RESTRICTED  
  
WT/TPR/S/449  
18 October  2023 
(23-7009) Page: 1/103 
Trade Policy Review Body   
 
TRADE POLICY REVIEW  
REPORT BY THE SECRETARIAT  
ALBANIA  
This report, prepared for the  third Trade Policy Review of Albania, has been drawn up by the WTO 
Secretariat on its own responsibility. The Secretariat has, as required by the Agreement establishing 
the Trade Policy Review Mechanism (Annex  3 of the Marrakesh Agreement Establishing the World  
Trade Organization), sought clarification from Albania on its trade policies and practices.  
 
Any technical questions arising from this report may be addressed to  Mombert  Hoppe 
(tel. 022 739 6098), Pierre  Latrille (tel.  022 739 5266), and Takako  Ikezuki (t el. 022 739 5534). 
 
Document WT/TPR/G/ 449 contains the policy statement submitted by Albania.  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Note: This report is subject to restricted circulation and press embargo until the end of the first 
session of the meeting of the Trade Policy Review Body on Albania. This report was drafted in English.  
  WT/TPR/S/ 449 • Albania  
 
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  CONTENTS  
SUMMARY  ................................ ................................ ................................ ........................  6 
1   ECONOMIC ENVIRONMENT  ................................ ................................ ........................  10 
1.1   Main features of the economy  ................................ ................................ ....................  10 
1.2   Recent economic developments  ................................ ................................ ..................  10 
1.3   Economic governance, policy direction, and reforms  ................................ ......................  12 
1.4   Fiscal policy  ................................ ................................ ................................ .............  12 
1.5   Monetary policy  ................................ ................................ ................................ ........  13 
1.6   Balance o f payments  ................................ ................................ ................................ . 14 
1.7   Developments in trade and investment  ................................ ................................ ........  14 
1.7.1   Trends and patterns in merchandise and services trade  ................................ ...............  14 
1.7.2   Trends and patterns in FDI  ................................ ................................ ......................  19 
2   TRADE AND INVESTMENT REGIMES  ................................ ................................ ...........  20 
2.1   General framework  ................................ ................................ ................................ ... 20 
2.2   Trade policy formulation and objectives  ................................ ................................ ....... 21 
2.3   Trade agreements and arrangements  ................................ ................................ ..........  22 
2.3.1   WTO ................................ ................................ ................................ ....................  22 
2.3.2   Regional and preferential agreements  ................................ ................................ ....... 23 
2.3.3   Other agreements and arrangements  ................................ ................................ ........  23 
2.4   Investment regime  ................................ ................................ ................................ ... 23 
2.4.1   Regulatory framework  ................................ ................................ ............................  24 
2.4.2   International cooperation  ................................ ................................ ........................  26 
2.5   E-commerce  ................................ ................................ ................................ ............  27 
3   TRADE POLICIES AND PRACTICES BY MEASURE  ................................ ........................  29 
3.1   Measures directly affecting imports  ................................ ................................ .............  29 
3.1.1   Customs procedures, valuation, and requirements  ................................ ......................  29 
3.1.2   Rules of origin  ................................ ................................ ................................ ....... 32 
3.1.3   Tariffs  ................................ ................................ ................................ ..................  33 
3.1.4   Other charges affecting imports  ................................ ................................ ...............  36 
3.1.4.1    Other duties an d charges  ................................ ................................ .....................  36 
3.1.4.2    Internal taxes collected at the border  ................................ ................................ ..... 36 
3.1.5   Import prohibitions, restrictions, and licensing  ................................ ...........................  37 
3.1.6   Anti-dumping, countervailing, and safeguard measures  ................................ ...............  38 
3.1.7   Other measures affecting imports  ................................ ................................ ............  38 
3.2   Measures directly affecting exports  ................................ ................................ .............  39 
3.2.1   Customs procedures and requirements  ................................ ................................ ..... 39 
3.2.2   Taxes, charges, and levies  ................................ ................................ ......................  39 
3.2.3   Export prohibitions, restrictions, and licensing  ................................ ............................  39 
3.2.4   Export support and promotion  ................................ ................................ .................  39 
3.2.5   Export finance, insurance, and guarantees  ................................ ................................  39 WT/TPR/S /449 • Albania  
 
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  3.3   Measures affecting production and trade  ................................ ................................ ...... 39 
3.3.1   Incentives  ................................ ................................ ................................ ............  39 
3.3.2   Standards and other technical requirements  ................................ ..............................  42 
3.3.3   Sanitary and phytosanitary requirements  ................................ ................................ .. 44 
3.3.4   Competition policy and price controls  ................................ ................................ ........  46 
3.3.5   State trading, state -owned enterprises, and privatization  ................................ .............  48 
3.3.6   Government procurement  ................................ ................................ .......................  49 
3.3.6.1    Legal framework  ................................ ................................ ................................ . 50 
3.3.6.2    Procurement methods, procedures, and outcomes  ................................ ...................  52 
3.3.6.3    Enforcement  ................................ ................................ ................................ ....... 53 
3.3.7   Intellectual property rights  ................................ ................................ ......................  53 
3.3.7.1    Domestic IP regime and recent developments  ................................ .........................  54 
3.3.7.2    Enforcement  ................................ ................................ ................................ ....... 56 
4   TRADE POLICIES BY SECTOR  ................................ ................................ .....................  58 
4.1   Agriculture, forestry, and fisheries  ................................ ................................ ..............  58 
4.1.1   Agriculture  ................................ ................................ ................................ ............  58 
4.1.1.1    Regulatory framework and policy instruments  ................................ .........................  58 
4.1.1.2    Domestic support  ................................ ................................ ................................  59 
4.1.1.3    Border measures ................................ ................................ ................................ . 61 
4.1.1.4    Export subsidies ................................ ................................ ................................ .. 62 
4.1.1.5    WTO notifications  ................................ ................................ ................................  62 
4.1.2   Fisheries  ................................ ................................ ................................ ...............  62 
4.2   Mining and energy  ................................ ................................ ................................ .... 63 
4.2.1   Mining  ................................ ................................ ................................ ..................  63 
4.2.1.1    Oil and gas  ................................ ................................ ................................ .........  63 
4.2.1.2   Solid minerals ................................ ................................ ................................ ..... 65 
4.2.2   Energy  ................................ ................................ ................................ .................  67 
4.2.2.1    Electricity and renewables  ................................ ................................ ....................  68 
4.2.2.2    Efficiency and other environmental measures  ................................ ..........................  72 
4.3   Services  ................................ ................................ ................................ ..................  73 
4.3.1   Financial services  ................................ ................................ ................................ ... 73 
4.3.1.1    Banking services  ................................ ................................ ................................ . 73 
4.3.1.2    Savings and loans and micro finance institutions  ................................ .....................  77 
4.3.1.3    Insurance services  ................................ ................................ ..............................  78 
4.3.1.4    Pension funds  ................................ ................................ ................................ ..... 79 
4.3.1.5    Collective investment undertakings services  ................................ ............................  80 
4.3.1.6    Securities and stock exchanges services  ................................ ................................ . 80 
4.3.1.7    Fintech and crypto -assets  ................................ ................................ .....................  81 
4.3.2   Telecommunications services  ................................ ................................ ...................  82 
4.3.3   Postal and courier services  ................................ ................................ ......................  85 WT/TPR/S/ 449 • Albania  
 
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  4.3.4   Transport services  ................................ ................................ ................................ . 86 
4.3.4.1    Air transport  ................................ ................................ ................................ ....... 86 
4.3.4.2    Maritime transport  ................................ ................................ ..............................  90 
4.3.4.3    Rail transport  ................................ ................................ ................................ ..... 91 
4.3.4.4    Road transport  ................................ ................................ ................................ ... 92 
4.3.5   Tourism services  ................................ ................................ ................................ .... 94 
4.3.6   Distribution services  ................................ ................................ ...............................  96 
5   APPENDIX TABLES  ................................ ................................ ................................ .... 98 
 
 CHARTS   
 
Chart  1.1 Product composition of merchandise trade by main HS  section,  2015 and 
2022  ................................ ................................ ................................ ..........................  15 
Chart  1.2 Direction of merchandise trade,  2015 and 2022  ................................ ....................  16 
Chart  1.3 Trade in intermediate goods (IG), by main category (excluding fuels),  2015-22 ........  17 
Chart  3.1 Simple MFN average applied tariff by HS  section,  2023 ................................ ..........  34 
Chart  4.1 Total energy supply (TES) by source,  2015 and 2020  ................................ ............  67 
Chart  4.2 Electricity generation by source, 2015 -22 ................................ ............................  68 
Chart  4.3 Electricity trade,  2015-22 ................................ ................................ ..................  71 
 
TABLES  
 
Table  1.1 Basic economic and social indicators,  2015-22 ................................ .....................  11 
Table  1.2 Fiscal indicators,  2015-22 ................................ ................................ ..................  13 
Table  1.3 Trade in services by sector,  2015-22................................ ................................ ... 17 
Table  1.4 FDI stock by major partner in Albania,  2015-22 ................................ ....................  19 
Table  2.1 Electronic  signatures  generated  for the private  sector,  2016-23 ..............................  28 
Table  3.1 Trade facilitation indicators  ................................ ................................ ................  32 
Table  3.2 Structure of MFN tariffs in Albania,  2015 and 2023  ................................ ...............  33 
Table  3.3 Albania's preferential tariff summary,  2023 ................................ ..........................  35 
Table  3.4 Tariff lines with applied MFN rates higher than their bound levels,  2023 ...................  35 
Table  3.5 Tax revenue by source, 2015 -22 ................................ ................................ ........  37 
Table  3.6 Imports requiring licen sing ................................ ................................ ................  37 
Table  3.7 Development of TEDA activity, 2016 and 2022  ................................ .....................  42 
Table  3.8 Competition enforcement statistics,  2016-22 ................................ ........................  47 
Table  3.9 Majority state -owned joint -stock enterprises,  2022 (at central level)  .......................  48 
Table  3.10 Government procurement,  2017-22 ................................ ................................ .. 50 
Table  3.11 Value and share of contracts awarded under different government procurement 
methods,  2015-22 ................................ ................................ ................................ .........  52 
Table  3.12 Main fea tures of the IPR regime ................................ ................................ ........  54 
Table  3.13 IPR protection, by type,  2016-22 ................................ ................................ ...... 56 
Table  3.14 IP-related cases,  2016-22................................ ................................ ................  57 WT/TPR/S /449 • Albania  
 
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  Table  4.1 Disbursements under the National Agricultural Support Scheme,  2017-23 ................  60 
Table  4.2 Support under IPARD  II, 2019-22 ................................ ................................ ....... 60 
Table  4.3 Planned support under IPARD  III, 2021-27 ................................ ..........................  61 
Table  4.4 Main features of mining licences,  2022 ................................ ................................  66 
Table  4.5 Mining fee rates applicable to raw metal ores and to processed minerals,  2018-24 .... 67 
Table  4.6 Planned and effective calendar of the liberalization of the electricity market  ..............  70 
Table  4.7 Evolution of the main economic indicators of the financial services sector,  2016-22 ... 73 
Table  4.8 Prudential regulations adopted since 2017 and corresponding EU  acquis  ..................  76 
Table  4.9 Lending activities of non -bank financial institutions,  2019-22 ................................ .. 77 
Table  4.10 Gross written premiums,  2018-22 ................................ ................................ ..... 78 
Table  4.11 Main economic indicators of the telecommunications sector,  2016-22 ....................  82 
Table  4.12 List of bilateral and plurilateral air services agreements signed by Albania  ..............  88 
Table  4.13 Passenger and freight rail traffic and length of the operating network,  2015-22 ....... 91 
Table  4.14 ECMT quotas by environmental categories of lorries  ................................ ............  94 
Table  4.15 Main indicators of the tourism sector,  2015-21 ................................ ...................  94 
Table  4.16 Contribution of tourism to GDP, employment, and investment,  2017-23 .................  95 
 
BOXES  
 
Box 2.1 How to access legislation  ................................ ................................ .....................  20 
 
APPENDIX TABLES  
 
Table A1.1  Merchandise exports by HS  section and major HS  chapter/subheading, 2015 -22 ..... 98 
Table A1.2  Merchandise imports by HS  section and major HS  chapter/subheading, 2015 -22 ... 100 
Table A1.3  Merchandise exports by destination,  2015-22 ................................ ...................  101 
Table A1.4  Merchandise imports by origin,  2015-22 ................................ ..........................  102 
 
Table A2.1  Selected notifications,  1 January  2016-31 August  2023 ................................ ..... 103 
 
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  SUMMARY  
1.  Albania is a small upper middle -income economy in the Western Balkans with a population of 
2.8 million. Servic es account for more than 50% of GDP, while agriculture continues to play an 
important albeit declining role, as do remittances.  
2.  A major earthquake in 2019, the COVID -19 pandemic, and price effects resulting from the war 
in Ukraine affected economic growth during the review period. Despite these challenges and a real 
GDP contraction of 3.3% in 2020, the economy overall expanded on average by 3.2%  annually in 
real terms between 2015 and 2022, and labour force participation increased. A significant share of 
imports is processed and re -exported, with some manufacturing and services activities growing in 
importance.  
3.  In response to these challenges, the Government adopted economic stimulus measures that 
aimed to support economic recovery and rapid reconstruction f ollowing the earthquake. In response 
to COVID -19, the Government implemented monetary, fiscal, and financial measures similar to those 
adopted by other economies. Albania also took measures to cushion higher transport and energy 
prices following the war in  Ukraine.  
4.  During most of the review period, fiscal policy was overall neutral, but it became expansionary 
in 2020 as a response to the pandemic. Following the return to fiscal consolidation, the budget is 
expected to reach a primary balance again in 2023. Albania applies a free -floating exchange rate 
regime and the currency appreciated in nominal and real terms during the review period. Foreign 
reserves increased in all years except  2019, as the current account deficit was funded,  inter alia, by 
workers' re mittance, FDI inflows, and government borrowing. More than half of credits and deposits 
in the banking system continue to be issued in foreign currency.  
5.  Imports and exports doubled in value terms  during the review period, and the European  Union 
remained Al bania's dominant trading partner. In 2022, imports and exports were dominated by 
mineral products (including electrical energy) and base metals, as well as machinery (imports) and 
textiles and footwear (exports). Roughly 20% of imports fall under the inwar d processing regime 
and a large and growing share are intermediate goods. More than half  of total exports are classified 
as re-exports, indicating the active participation of companies in Albania in value chains. Services 
imports grew much more slowly than  exports, driven by tourism, professional and management 
consulting services, certain manufacturing services, and road transport services.  
6.  Policies in Albania continue to be guided by the objective of becoming an EU  member  State, with 
a strong focus on jud icial reform and ongoing efforts to approximate its legislation with the EU  acquis 
in line with a regularly updated National Plan for European Integration. Efforts to restructure the 
judicial system and increase its independence and efficiency continued du ring the review period, and 
a new High Judicial Council, a High Prosecutorial Council, and the Justice Appointment Council 
started to operate in  2019. The re -vetting of officials in the Albanian judiciary also continued.  
7.  Trade and trade -related policies fo rm an integral part of broader economic policies, aiming to 
attract foreign investment, foster economic growth, and generate employment. In addition to its 
efforts to join the European  Union, Albania maintains four additional FTAs, among them a newly 
concluded agreement with the United  Kingdom.  
8.  Albania remains committed to the open, non -discriminatory, and rules -based global multilateral 
trading system; contributes to discussions at the WTO; and participates in the four Joint Statement 
Initiatives  (JSIs),  inter alia. Under the JSI on services domestic regulation, Albania has requested 
the initiation of the certification procedure for its schedule of specific commitments. It accepted the 
Agreement on Trade Facilitation (TFA) in 2016 and the expansion of produ ct coverage under the 
Information Technology Agreement in  2018. Negotiations to accede to the Agreement on 
Government Procurement, pending since  2007, are expected to resume shortly and Albania expects 
to deposit the instrument of acceptance of the Agreement on Fisheries Subsidies during 2023.  
9.  While Albania submitted many  notifications to the  WTO, at least 10  remained outstanding at the 
end of June  2023, and some relevant changes to laws and legislation had also yet to be notified. 
The most recent no tification on agriculture domestic support is for calendar year  2017, and the WT/TPR/S /449 • Albania  
 
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  authorities are planning to request technical assistance from the Secretariat to help alleviate capacity 
constraints in particular relating to agriculture notifications.  
10.  The Busi ness Development and Investment Strategy  (BIDS) 2021 -27 focuses  on attracting 
investment, SMEs and innovation, and human capital development. During the review period, the 
Government undertook reforms to improve the investment and business environment. The  
authorities also intensified their efforts to formalize the economy, but despite some progress the 
informal economy remains large: it was estimated to account for around 30% of GDP in  2018 
and 37% of employment in  2019.  
11.  Aimed at reducing investment -relate d risks, a Strategic Investment Law establishes specific 
procedures for domestic and foreign investors. With few exceptions, no restrictions on foreign 
ownership or control in domestic corporations are in place, and no prior authorization for FDI is 
requir ed in principle. In  2017, a new Bankruptcy  Law replaced a 2002  law. 
12.  Digitization is a cross -cutting policy priority. Information regarding permits and operating 
licences that businesses might require is generally provided online; companies have been able t o 
apply for most licences and permits only via the e -Albania portal since  2020; and since May  2022, 
licences and permits have also been issued electronically, removing all physical interaction between 
businesses and regulators. Generally, the electronic pr ovision and delivery of public services 
increased significantly during the review period, as services continue to be added to the e -Albania 
portal. According to the authorities, the 1,227  services offered electronically in 2023 via the portal 
account for a bout 95% of all services offered, and they are offered exclusively online.  
13.  Amid these positive developments, a number of challenges remain, affecting the business and 
investment environment. These include a lack of predictability regarding judicial outcome s, a 
shortage of workers with required skills, and the need to improve infrastructure. Aware of these 
challenges, the Government continue s reform  the judiciary  and the Strategy against Corruption has 
been extended to 2023. The skills gap remains a major ch allenge and is particularly pronounced 
among younger workers, related to relatively high emigration rates.  
14.  E-commerce in Albania is growing fast and is seen as a key growth opportunity, but penetration 
still lags that of other economies in the region. Elec tronic signatures have full legal effect, consumer 
protection was reinforced during the review period, a legal framework for the protection of personal 
data is in place, small parcels arriving in Albania are not subject to import duties, and a simplified 
procedure for small non -commercial shipments is in place.  
15.  While some of its provisions had already applied since January  2015, Albania's new 
Customs  Code fully entered into force in June  2017. Since May  2019, customs declarations must be 
filed online using an electronic signature. Customs uses a risk -based system embedded in 
ASYCUDA  World, and the share of customs declarations classified in the green channel (no additional 
controls) increased from 4.0% to 19.7% between 2016 and 2022. A blue channel (post -clearance 
audit) was introduced in  2018 but only applied until 2022. Around 30% of consignments continued 
to be scanned at borders in  2022, regardless of their risk classification.  Economic operators can 
apply for an advance decision regarding tariff classifi cation or origin, but not customs valuation.  
16.  During the review period, available indicators pointed to improvements in trade facilitation, in 
particular regarding appeals, fees and charges, documents, procedures, and coordination at borders. 
More than 98% of Albania's commitments under the TFA had been implemented at the beginning 
of 2023, with the remaining commitments under Category  C to be implement ed by the end of  2024. 
A new Approved Economic Operator (AEO) scheme has been operational since  2019 and th e process 
of establishing mutual recognition of AEOs with the Central European Free Trade Agreement (CEFTA) 
is under way. Efforts to create a national single window system are ongoing.  
17.  All tariff lines in Albania's tariff schedule are bound. Applied tariff  rates are on average  4.1%, 
significantly lower than the average bound rate, and remain around three times higher for 
agricultural goods compared to non -agricultural goods. Both changed little between 2015 and 2023. 
Albania applies no non-ad valorem  tariffs and the tariff schedule consists of six rates ranging from 
zero to 15%, with around half of tariff lines duty free, and 16.8% of tariff lines having a nuisance 
tariff of 2%. It applies no MFN , but some preferential , tariff rate quotas, affecting certain agricultural 
goods. For 24  tariff lines, applied rates exceed bound rates, with around half of these having been WT/TPR/S/ 449 • Albania  
 
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  in the same situation at the time of the previous Review. Customs also levies "scanning fees" for 
each customs declaration, regardless of wheth er the consignments are actually scanned.  
18.  Licensing requirements remain in place for a number of products, in most cases with economic 
operators licensed to import such goods without each individual shipment requiring a licence. Some 
temporary export restr ictions relating to certain drugs, medical supplies, and medical devices were 
in place between March  2020 and July  2021, while export licences for military goods remain in place.  
19.  Albania continues to implement a scheme of Technology and Economic Developmen t 
Areas  (TEDAs) although they remain in their infancy. Four TEDAs have been established and one 
has been operational since 2022. The Albanian Investment Development Agency  (AIDA) also 
administered a number of support funds for SMEs and supports some products via the "Made in 
Albania" campaign, launched in July  2020. Certain economic sectors benefited from a reduced 
corporate income tax during the review period ; some continue to benefit . A VAT reform implemented 
in 2021 limited the use of investments e ligible to benefit from VAT exemptions. There were little 
changes to excise duties, with some rates indexed to past inflation in 2021.  
20.  The framework relating to standards and technical regulations remains largely unchanged from 
the previous Review. According to the authorities, 90% of Albanian standards are aligned with 
European standards, while a ll technical regulations are harmonized wi th the EU  technical regulations, 
most of them based on the European "new approach" to administering technical regulations. Albania 
adopted a new law on organic production in 2016 and a Law on Metrology in 2020. Parts of the  
regulatory SPS framework were updated during the review period as the Food Law and the laws 
regarding animal and plant health were amended. Imports of animal products are only permitted 
from establishments and countries that are listed for export to the European  Union unless there is a 
prior agreement in place. Veterinary medical products and p lant protection products must be 
registered in Albania, which requires their prior registration for marketing in an EU  member  State.  
21.  The competition policy framework remains broadly unchanged. Durin g the review period, the 
Competition Commission allowed 166  mergers and blocked none. The Competition Commission 
initiated 86  investigations and took 559  decisions, concentrated in the financial, mobile 
telecommunications, wholesale, and hydrocarbon sector s. In response to the war in Ukraine, the 
authorities established temporary rules for transparency and the price monitoring of oil, gas, and 
their by -products, as well as some basic food products. These are no longer applied.  
22.  State -owned enterprises (SOEs)  continue to play an important role in parts of the economy, in 
particular in backbone services such as transport, telecommunications, and energy, but also in the 
provision of certain social services. SOEs benefit from direct transfers and indirect budget support 
including public guarantees, with such contingent liabilities accounted for in the public debt stock. 
No central institution overseeing the performance of all SOEs is in place; each Ministry is responsible 
for the SOEs it owns. There were some chan ges to ownership of SOEs during the review period, in 
particular related to unbundling in the energy sector. Albania maintains a partial list of SOEs online, 
which does not include employment or financial information.  
23.  Albania revised its legislative framew ork for government procurement during the review period 
and indicated it would reactivate its accession process to the WTO  Agreement on Government 
Procurement. The new procurement law introduced significant changes, largely aligning the 
framework to the EU  acquis , while a revision of the framework for concessions and PPP aimed to 
limit the use of unsolicited tenders. Government procurement spending in Albania increased 
from 7% of GDP in  2017 to  8.9% in  2021 but was significantly higher in  2020 in response t o the 2019 
earthquake and the COVID -19 pandemic. The share of procedures awarded without the publication 
of a public notice declined from  38.8% in  2015 to 3.3% in  2022, and their value from 12.1% to  0.7% 
as the use of the electronic procurement system beca me also mandatory for the negotiated 
procedure in  2018.  
24.  Regarding intellectual property, Albania revised the Law on Industrial Property and adopted a 
new Copyright  Law in 2016, aiming to align its framework with seven of the relevant EU Directives. 
Amendme nts to the Law on Industrial Property introduced the concept of trade secrets, clarified the 
framework regarding well -known trademarks, and changed the application process for geographic 
indications.  WT/TPR/S /449 • Albania  
 
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  25.  Support to the agricultural and fisheries sector increas ed significantly during the review period, 
with domestic support measures under the National Agricultural Support Scheme (NASS) reaching 
ALL 5 billion in 2022. A primarily EU -funded scheme complements the NASS. A reform in  2021 
introduced a reduced VAT rat e of 10% applying to certain agricultural inputs instead of the previous 
VAT exemption applying to such inputs. The completion of effective farm register and land parcel 
registration systems remains pending. Foreigners cannot own more than 49% of fishing c ompanies 
that have fishing rights, and fish catch permits are issued only to vessels flying the Albanian flag.  
26.  Albania is rich in mineral resources , and mining and quarrying remains a significant economic 
activity, although its share has been declining. Th e most important products in volume terms are 
limestone, crude oil, clay, chrome, copper, coal, and ferro -nickel. Albania is a net exporter of 
crude  oil. The Trans Adriatic Pipeline (TAP) for gas started commercial operations in November  2020 
and a new com bined operator of the transmission and distribution of gas in Albania was certified 
in 2017 under the unbundling ownership model . 
27.  Albania is a significant producer of hydropower, accounting for nearly all of its energy 
production. The transmission and dist ribution networks have been unbundled, and the liberalization 
of the electricity market has been completed for nearly all consumers. SOEs continue to dominate 
generation (alongside private hydropower producers), transmission, and distribution. In volume 
terms, Albania was a net exporter of electricity in 2018 and 2021, although it remained a net 
importer in value terms in both years due to price effects, as Albania exports hydroelectricity at low 
prices  in winter and imports electricity at high prices in su mmer.  
28.  Banking continues to be dominated by foreign banks. During the review period, Albania updated 
prudential regulations for the banking sector, transposing the (evolving) EU  acquis , and adopted 
various Anti -Money Laundering/Combating the Financing of Terrorism (AML/CFT) measures. During 
the COVID -19 pandemic, regulatory changes to alleviate its possible effects on financial institutions 
and borrowers were put in place. In May  2022, the Bank of Albania requested a formal equivalence 
process  with the EU  framework. The share of non -performing loans declined significantly.  
29.  The insurance sector consists of 12  companies and has been growing broadly in line with GDP. 
Changes regarding insurance against civil liability in respect of the use of moto r vehicles were 
introduced in 2021. A new law on Collective Investment Undertakings was approved in 2020 and 
one for  private pension funds has been drafted. A new privately owned securities exchange (ALSE) 
has been operational since 2018 with predominantly  government securities traded there . 
30.  The telecommunications sector developed further during the review period. Prices have 
decreased and penetration rates for fixed broadband have more than doubled, while those for mobile 
broadband grew by a third. As a re sult of sector consolidation, only two mobile operators remain 
active. Regarding fixed interconnections, the regulator imposed remedies on operators with 
significant market power. While the most important frequency bands for  5G cellular  networks have 
been included in the National Frequency Plan, these bands have not yet been tendered but 
expectations are that the 700  MHz band will be released within 2023. The postal market was fully 
liberalized in 2017. Albania regulates cross -border parcel delivery service s. 
31.  In the area of transport, two scheduled air carriers emerged during the review period, serving 
more than 20  destinations, with 28  foreign  airlines also serving Tirana. A second international airport 
became operational in 2021 with others being built. Th e concession agreement for Tirana airport 
was amended in 2021 and that  for the second international airport concluded. Nearly all served 
destinations fall under the European Common Aviation Area Agreement . For maritime transport, 
cabotage remains reserved to national flag vessels but waivers can be granted. The risk classification 
of Albanian -flagged ships improved in the review period, reaching the category of medium risk 
in 2023. R ail freight traffic remained overall limited with some variation across tim e, and efforts to 
rehabilitate the Tirana -Durrës line are under way. A new Railway Code was adopted in 2016, and 
in 2021 the former railway monopoly was unbundled into four different companies. Albania has 
updated its licensing regime for international roa d freight and passenger transport.  
32.  The importance of tourism continues to increase, and in  2022 Albania recorded its strongest 
tourism season on record. A new national strategy for sustainable tourism development 2019 -23 
aims to move away from a beach -based mass market model towards one that is more diverse and 
sustainable, including archaeology and culture. Certain incentives or investment facilitation is 
available for the tourism sector in specific areas.  WT/TPR/S/ 449 • Albania  
 
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  1  ECONOMIC ENVIRONMENT  
1.1  Main features of the economy  
1.1.  Albania is a small upper -middle income economy in the Western Balkans, with the Adriatic and 
Ionian Seas to the west and mountains to the east. It is connected by highways to its four  neighbours 
and its maj or port is located in Durrës, close to the capital, Tirana. The limited development and 
quality of transport infrastructure remains a challenge to economic growth even though it has been 
improving.1 
1.2.  Amid a declining and ageing population, Albania had a gr oss national income (GNI) per capita 
of USD  6,110 in  2021.2 In 2021, 16% of the 2.8  million  inhabitants were aged  65 and above, an 
increase from the 14% of the 2.9  million in  2016.3 Urbanization also continues at a high rate, 
with 63% of the population l iving in urban areas, up from  58% in  2016.4 
1.3.  While services accounted for more than 50% of GDP in  2022, agriculture, forestry, and fisheries 
continued to account for a significant share with more than 20%, and roughly one  third of all 
employment, down from  more than 40% in  2016.5 Within industry, manufacturing accounted for 
7.5% of gross value added  (GVA) in  2022, with mining and quarrying as well as electricity other 
important industrial activities. Albania continues to produce the majority of the electri city it 
consumes domestically using hydropower, and in  2018 and 2021 it became a net exporter of 
electricity in volume terms, but power production varies significantly with rainfall patterns 
(Section  4.2).6 
1.4.  The share of the informal economy remains signif icant, although it continues to decline. 
In 2018, the informal sector was estimated to account for roughly 30% of GDP7, and in  2019 37% 
of employment was informal.8 Most firms are very small, with 1% of firms accounting for two  thirds 
of employment and m ore than half of the value added.9 Nearly 9.5% of GDP results from remittance 
inflows, a share significantly lower than the 11% in  2016 and even higher values prior to that.10 This 
is broadly comparable to the share in other regional economies.  
1.2  Recent economic developments  
1.5.  During the revie w period, economic performance was affected by the 2019 earthquake and the 
COVID -19 pandemic. While the economy contracted by 3.3% in real terms in  2020 (and recovered 
in 2021, growing by 8.9%), it overall expanded on average by 3.2%  annually in real terms  between 
2015 and 2022, or nominally with an annual 5.8% using the compound annual growth rate 
(Table  1.1). The share of agriculture in total GVA declined from 22.5% to 21.3%, while the 
manufacturing, construction, and transport and hospitality sectors inc reased their share in total 
output, even though manufacturing (and industry more general) as well as the hospitality sector 
were particularly negatively affected during the COVID -19 pandemic. In  2022, Albania recorded its 
strongest tourism season on record .11 The share of mining and quarrying, which includes oil 
 
1 World Bank  (2022), Country Private Sector Diagnostic: Creating Markets in Albania . 
2 World Bank Open Data, GNI per capita, Atlas Method (Current US$) . Viewed  at: 
https://data.worldbank.org/indicator/NY.GNP.PCAP.CD . 
3 World Bank Open Data,  Population, Total . Viewed  at: 
https://data.worldbank.org/indicator/SP.POP.TOTL ; and Population Ages  65 and Above (%  of Total Population) . 
Viewed  at: https://data.worldbank.org/indicator/SP.POP.65UP.TO.ZS . 
4 World Bank Open Data, Urban Population (% of Total Population) . Viewed  at: 
https://data.worldbank.org/indicator/SP.URB.TOTL.IN.ZS . 
5 INSTAT, Labour Force Survey.  
6 IMF (2022), Albania: Staff Report for the 2022 Article  IV Consultation , IMF Country Repo rt 
No. 22/362, Annex  VI. 
7 Elgin, C., et  al. (2021), Understanding Informality, CEPR Discussion Paper  16497 , Centre for Economic 
Policy Research.  
8 World Bank  (2022), Country Private Sector Diagnostic: Creating Markets in Albania . 
9 World Bank  (2022), Country Private Sector Diagnostic: Creating Markets in Albania . 
10 World Bank Open Data, Personal Remittances, Received (% of GDP) . Viewed  at: 
https://data.worldbank.org/indicator/BX.TRF.PWKR.DT.GD.ZS . 
11 IMF Country Report  No. 22/362.  WT/TPR/S /449 • Albania  
 
- 11 - 
 
  production, declined from 3.7% in  2015 to 2.5% in  2021 ( Section  4.2), and that of electricity from 
3.7% to 1.9%, according to the authorities (no detailed data for 2022 were available).  
Table  1.1 Basic economic and social indicators,  2015 -22 
 2015  2016  2017  2018  2019  2020  2021  2022  
GDP at current market prices (ALL  billion)  1,434  1,472  1,551  1,637  1,692  1,647  1,856  2,134  
GDP at current market prices (EUR  million)  10,264  10,720  11,559  12,828  13,754  13,311  15,157  17,948  
GDP per capita (EUR  at current prices)  3,557  3,728  4,018  4,469  4,805  4,677  5,390  6,499  
Population (million)  2.9 2.9 2.9 2.9 2.9 2.8 2.8 2.8 
National accounts (% change at previous year constant prices, unless otherwise indicated)  
Real GDP growth  2.2 3.3 3.8 4.0 2.1 -3.3 8.9 4.8 
Final consumption  0.9 2.4 2.5 2.9 3.3 -2.8 5.1 5.4 
Final consumption of the households  0.9 2.0 2.6 3.1 3.3 -3.3 4.7 7.2 
Final consumption of general government  -1.1 4.7 3.2 0.7 2.9 1.5 7.8 -4.9 
Gross fixed capital formation  3.5 2.4 6.0 2.3 -3.6 -1.4 19.2 6.5 
Exports of goods and services (fob)  1.0 11.3 13.2 4.0 2.6 -27.9 52.0 7.5 
Exports of goods  -17.1 -5.8 6.8 13.8 -8.5 -2.6 50.2 16.5 
Exports of services  9.9 17.9 15.2 1.3 6.2 -34.6 52.7 4.2 
Imports of goods and services (fob)  -2.9 6.9 8.4 2.4 2.3 -19.8 31.5 13.1 
Imports of goods  -1.9 7.9 8.2 1.8 1.7 -6.4 29.0 8.6 
Imports of services  -4.9 4.9 8.7 3.5 3.4 -45.2 39.3 26.7 
Structure of GVA by economic activity (% of GVA at current basic prices)a 
Agriculture, forestry and fishing  22.5 22.6 21.8 21.1 21.0 21.9 21.1 21.3 
Industryb 14.6 14.0 12.8 14.1 13.8 12.8 12.9 13.4 
of which: manufacturing industry  6.5 6.5 7.0 7.0 7.2 7.0 7.1 7.5 
Construction  10.1 10.2 10.5 10.3 9.8 10.2 10.9 11.1 
Trade; transport; accommodation and food 
service activities  17.8 18.2 18.5 18.8 19.3 18.5 18.9 20.3 
Information and communication  3.4 3.5 3.5 3.3 3.4 3.5 3.5 3.4 
Financial and insurance activities  3.1 2.8 2.9 2.6 2.5 2.4 2.4 2.3 
Real estate activities  6.8 6.6 6.4 6.3 6.4 6.9 6.6 6.4 
Professional, scientific, administrative and 
support service activities  6.3 6.6 7.2 7.4 7.7 7.3 7.1 6.8 
Public administration, education, human 
health  12.6 12.5 13.4 13.1 13.4 14.0 14.1 12.7 
Arts, entertainment and recreation activities 
and other services  2.7 3.0 3.0 3.1 2.7 2.6 2.6 2.3 
Other          
CPI (%change, period average)  1.9 1.2 2.1 2.0 1.4 1.6 2.0 6.7 
ALL/EUR  (period average)  139.7  137.4  134.2  127.6  123.0  123.8  122.5  119.0  
Real effective exchange rate (% change)c .. .. .. .. 3.6 1.2 0.8 .. 
Current account (% of GDP)  -8.6 -7.6 -7.5 -6.8 -7.9 -8.7 -7.7 -6.0 
International reserve in months of imports of 
goods and services  7.6 7.2 6.7 7.0 6.5 9.6 8.8 6.9 
Gross external debt position (% of GDP)  74.4 73.5 68.8 65.1 60.0 64.2 64.4 54.6 
FDI inflows (% of GDP)  8.7 8.8 7.8 7.9 7.8 7.0 6.8 7.7 
FDI stock (% of GDP)  48.5 53.0 55.9 58.1 58.0 63.7 63.0 63.2 
.. Not available.  
a Seasonally adjusted, except data in  2022 based on non -seasonally adjusted quarterly estimations.  
b Referring to mining and quarrying; manufacturing; electricity, gas, steam and air conditioning 
supply; water supply; sewerage, waste management; and remediation activities.  
c Figures are sourced from IMF (2022), Albania: Staff Report for the 2022 Article  IV Consultation , 
IMF Country Report No.  22/362. Projection data on 2022 general government debt.  
Note:  GDP-related figures: semi -final for 2021, and preliminary for 2022.  
Source:  Institute of Statistics, Statistical Database . Viewed  at: https://www.instat.gov.al/en/ ; Bank of 
Albania, Statistics . Viewed  at: https://www.bankofalbania.org/home/ ; IMF Country 
Report  No. 22/362.  
1.6.  Within the manufacturing sector (7.5% of GVA in  2022), textiles, apparel, and le ather 
accounted for one  third, growing in importance until 2018 and declining afterwards as, in particular, 
the number of enterprises declined. Rubber and plastics, as well as basic metal and fabricated metal, 
each account for 15% of manufacturing output. Among the latter, car parts manufacturing is an 
emerging sector, although no comprehensive consolidated data on its various components were 
available. Another fast -growing sector, growing with more than 25% in all but one  year during the 
review period, is IT-related services, which in  2021 accounted for  1.2%  of GVA. The IMF expects 
economic growth to slow to 2.2% in  2023 and recover to 3.3% in  2024.12 
 
12 IMF Country Report No.  22/362.  WT/TPR/S/ 449 • Albania  
 
- 12 - 
 
  1.7.  Labour force participation increased significantly from 68.7% in  2018 to 74.8% at the end 
of 2022 for the a ge group 15 -6413, which is relatively high compared to that of neighbouring 
economies. Labour force participation for men in this age group was significantly higher at 80.7% 
compared to that for women (69.1%), but the difference was smaller compared to 201 8 levels. At 
the end of 2022, the unemployment rate stood at 11%, lower than the 12.7% at the end of 2018, 
and nearly identical for women and men. It was twice as high for the younger population 
(ages  15 to 29). 
1.8.  A strong earthquake shook Albania in  2019, r esulting in a number of deaths and significant 
economic damage estimated by a UN Post -Disaster Needs Assessment at ALL  121 billion 
(about  EUR 1 billion), with the tourism sector particularly affected.14 As a response, the Government 
took measures to suppor t rapid reconstruction and adopted economic stimulus measures that aimed 
to support economic recovery at various levels of government and are funded via a Reconstruction 
Fund with a total volume of slightly more than ALL  90 billion between 2020 and 2023.  
1.9.  The authorities responded to the COVID -19 pandemic by introducing a state of emergency that 
lasted from March to June  2020 and took a number of measures similar to those adopted by other 
major economies, and in particular the European  Union. Monetary easing  and measures of regulatory 
forbearance were coupled with state aid schemes (grants as well as state guarantees) to businesses, 
support to vulnerable parts of the population and small businesses, the rescheduling of income tax 
payments for businesses of a certain size, and certain health and humanitarian measures. The 
Government also issued loan guarantees of ALL  26 billion. A first guarantee programme of 
ALL 11 billion was for loans that banks were extending to companies affected by the pandemic for 
salary  payments, and it also included interest subsidies. The second guarantee programme covered 
loans for working capital and investments (with partial guarantees only and no interest rate 
subsidies). Ultimately, ALL  18.4 billion was used for working capital an d investment loans, and 
ALL 5.3 billion for salary payments.  
1.10.  As a response to the war in Ukraine, the authorities established cash transfer schemes aimed 
at cushioning the effects of higher inflation, particular ly higher transport and energy prices. They 
also issued partial (up to 60%) guarantees for bank loans to firms aiming to maintain food stockpiles.  
1.3  Economic governance, policy direction, and reforms  
1.11.  Policies in Albania continue to be guided by the objective of becoming an EU member  State 
(Section  2.2) with a strong focus on judicial reform, which is seen by both Albania and the 
European  Union as a precondition to successful accession negotiations. Other important reforms 
were undertaken in the areas of customs and governmen t procurement.  
1.12.  The National Strategy for Development and European Integration (NSDEI, SKZHIE  III in 
Albanian)  2030 was approved in February  2023, replacing an earlier plan of the same name for the 
period 2016 -20. The National Plan for European Integration  2023-25, informed by this Strategy and 
updated every year, outlines the approximation of legislation with the EU  acquis . The new Strategy 
spells out policy priorities to foster development and support the integration with the 
European  Union, building on th e priorities outlined earlier. In particular, it stresses macroeconomic 
and financial stability, improved standards to protect citizens and allow for EU  integration, and 
policies aiming to improve economic competitiveness. Other cross -cutting policy priori ties include 
those spelled out in a strategy for digitization15 and a gender equality strategy for  2021-30.16 
1.4  Fiscal policy  
1.13.  Between 2016 and 2019, fiscal policy was neutral overall, as Albania achieved a primary 
surplus and the ratio of central government debt to GDP declined to  65.8%. Expansionary fiscal 
 
13 INSTAT, Employment and Unemployment from LFS . 
14 Government of Albania, et  al. (2020), Albania: Post -Disaster Needs Assessment . Viewed  at: 
https://fpi.ec.europa. eu/system/files/2021 -05/10_Albania%202020%20Post -
Disaster%20Needs%20Assessment.pdf . 
15 Cross -Sectoral Strategy Digital Agenda of Albania 2022 -2026, adopted by Council of Ministers 
Decision  No. 370/2022.  
16 Ministry of Healt h and Social Protection, Albania National Strategy for Gender Equality 2021 -30. The 
strategy replaced an earlier strategy.  WT/TPR/S /449 • Albania  
 
- 13 - 
 
  policy as a response to the COVID -19 pandemic resulted in significant budget deficits in  2020,  2021, 
and 2022. Debt as a share of GDP reached 74.5% at the end of 2021 before declining to 64.6% 
in 2022 ( Table 1.2). Fiscal expansion in  2020 was the result of lower revenues (in nominal terms 
and as a share of GDP) driven by lower profit and personal income taxes, coupled with marginally 
higher expenditure in nominal terms (significantly higher as a share of th e declining GDP), driven 
by a shift towards social insurance outlays and social transfers. It also resulted from higher nominal 
capital expenditures in response to the 2019 earthquake. Revenues as a share of GDP recovered to 
pre-pandemic levels in  2021 whi le expenditures remained higher than before the pandemic. Fiscal 
consolidation continued in  2022 as expenditures declined more than revenues. The budget expected 
to reach a primary balance again in 2023 ( Table  1.2).17 
Table  1.2 Fiscal indicators,  2015 -22 
(% of GDP)  
 2015  2016  2017  2018  2019  2020  2021  2022  
General government finance          
Total revenues, of which:  26.4 27.6 27.8 27.5 27.2 25.9 27.5 26.8 
Grants  0.8 1.0 0.7 0.5 0.5 0.5 0.7 0.4 
Tax revenues, of which:  23.9 25.1 25.7 25.6 25.2 24.2 25.6 25.4 
Customs revenues  10.0 10.1 10.2 9.8 9.6 9.3 10.4 10.5 
Tax office revenues  8.0 8.6 8.7 8.8 8.4 7.6 7.8 7.9 
Non-tax revenues  1.8 1.5 1.3 1.4 1.5 1.2 1.2 1.0 
Total expenditures, of which:  30.5 29.5 29.8 29.1 29.1 32.6 32.1 30.5 
Current expenditures  24.5 25.0 24.7 24.3 24.6 25.6 24.8 23.4 
Capital expenditures  4.4 4.0 4.4 4.8 4.4 5.2 5.3 5.3 
Cash balance  -4.1 -1.8 -2.0 -1.6 -1.9 -6.7 -4.6 -3.7 
General government debt  72.7 72.4 70.2 67.7 65.8 74.3 74.5 64.6 
Source:  Institute of Statistics, Statistical Database . Viewed  at: https://www.instat.gov.al/en/ ; Bank of 
Albania, Statistics . Viewed  at: https://www.bankofalbania.org/home/ . 
1.14.  During the review period, the authorities continued to update the medium -term debt 
management strategies, with the most recent one adopted for 2022 -26. The share of domestic debt 
among total debt declined to 50.8% at the end of 2021, from 52.7% in  2016, although it had stood 
at 53.7% in  2019 prior  to the COVID -19 pandemic, with 50.2% of total debt issued in foreign 
currency. Interest rate cost declined generally, and a larger share of debt (80.3%) had fixed interest 
rates at the end of  2021 as compared to 2016  (71.4%).  
1.5  Monetary policy  
1.15.  During the re view period, nominal interest rates remained very low and broadly unchanged 
until the beginning of the COVID -19 pandemic, with the base rate being reduced by 50  basis points 
to 1%  in 2018, leaving little room to reduce them further at the outbreak of the p andemic. In 
March  2020, the Bank of Albania (the Central Bank) further reduced rates and kept them low until 
it started a circle of monetary tightening in March  2022 in response to rising inflation, which 
increased from less than  2% for most of 2021 to 8% at the end of 2022 and beginning of 2023.18 
By the end of 2022, the base rate stood at 2.75% and increased to 3% in May  2023. At the beginning 
of August  2023, the overnight deposit rate stood at 2% as the Bank of Albania aims to achieve the 
targeted inflat ion rate of 3% by  2024. Based on the Bank's data -driven approach, further rate 
increases might therefore be needed. At significantly higher inflation rates, real interest rates are 
likely to be negative. Monetary policy instruments comprise open market ope rations, standing 
facilities, and minimum reserve ratios that differ by maturity, as well as by domestic and foreign 
liabilities. These have remained unchanged since  2018.  
1.16.  Between 2017 and 2022, the share of credits and deposits in the banking system issue d in 
foreign currency remained high and broadly unchanged, with foreign -currency -denominated 
deposits, as well as loans, standing at around 55% of the total.19 According to the IMF, the relatively 
high level of "Euroization" somewhat limits the effectivene ss of monetary policy transmission, with 
 
17 IMF Country Report No.  22/362.  
18 Bank of Albania, Core Inflation . Viewed  at: 
https://www.bankofalbania.org/Monetary_Policy/Objective_and_strategy/Core_inflation_23085_1.html . 
19 IMF Country Report No.  22/362, Table  4a. WT/TPR/S/ 449 • Albania  
 
- 14 - 
 
  the authorities pointing out that European Central Bank  (ECB) policies also affect monetary 
conditions in Albania.20 
1.17.  According to the Bank of Albania, the currency is under a free -floating exchange rate regime. 
During the review period, the lek appreciated in nominal and in real terms (12% between  2016 
and 2021).21 There are no restrictions on foreign exchange operations related to capital inflows or 
outflows in place.  
1.6  Balance of payments  
1.18.  Albania's balance of payment s was mostly positive between 2018 and 2022, with a deficit 
in 2019 resulting from a higher current account deficit and some portfolio investment outflows. A 
current account deficit of between 6.8% and 8.7% of GDP was composed of increasing net goods 
impor ts and net primary income outflows, partially compensated by net services exports (which 
strongly increased), workers' remittances, and other transfers. It was funded by a positive capital 
account, strong FDI inflows between 6.4% and 8% of GDP annually, as  well as other (portfolio) 
capital inflows that include government borrowing. Foreign reserves increased in all years 
except  2019.22 
1.7  Developments in trade and investment  
1.7.1   Trends and patterns in merchandise and services trade  
1.19.  Overall, trade in goods and services was equivalent to 85.5% of GDP in  2022, a significant 
increase from the 71.8% it represented in  2015.23 Total goods imports were valued at EUR  8 billion 
in 2022, while total goods exports were valued at EUR  4.1 billion. The trade deficit in goods is 
partially compensated by a trade surplus for services.  
Trade in goods and intermediate products  
1.20.  Between 2015 and 2022, imports more than doubled, with the largest increases occurring 
in 2021 and 2022, mainly as a result of higher commodity prices.24 In 2022, imports were dominated 
by mineral products (18.1%, including electrical energy, up from 11.1% in  2015), machinery 
(declining in share from 15.1% to 13.2%), and base metals (increasing in share from 10.0% to 
12.0%) ( Chart  1.1). In 2020, energy imports  accounted for more than one  third of gross available 
energy, and for slightly less than a quarter in 2021 (Section  4.2).25 Data for 2022 were not available.  
1.21.  The European  Union remains the main source of imports, with more than 50% originating 
there, a dec line from more than 60% in  2015. Other European economies have partially replaced 
some of these imports, with the share of imports originating in Türkiye increasing from 8.0% 
to 12.1%, in Switzerland from 1.5% to 2.3%, and in Kosovo26 from 1% to 1.7%. Impo rts from the 
Kingdom  of Saudi  Arabia increased from 0.1% to 3.6% of the total, driven by oil ( Chart  1.2). 
1.22.  Goods exports also more than doubled between 2015 and 2022, with the bulk of the increase 
occurring in  2021 and 2022, also largely the result of highe r commodity prices. Exports continue to 
consist primarily of mineral products, in particular mineral fuels whose composition shifted 
significantly towards electrical energy, base metals and articles thereof, and textiles and footwear 
(Chart  1.1 and Table  A1.1). 
 
20 IMF Country Report No.  22/362.  
21 IMF Country Report No.  22/362.  
22 IMF Country Report No.  22/362.  
23 Institute of Statistics, Statistical Database . Viewed  at: https://www.instat.gov.al/en/ . 
24 World Bank (2023), Western Balkans Regular Economic Report  – Testing Resilience , No. 23. 
25 Eurostat, Energy Imports Dependency . Viewed  at: https://ec.europa.eu/eurostat/databrowser/view/  
nrg_ind_id/default/table?lang=en .  
26 References to Kosovo shall be understood to be in the context of Security Council 
resolution  1244 (1999).  WT/TPR/S /449 • Albania  
 
- 15 - 
 
  1.23.  As for imports, the European  Union remains the dominant export market. In  2022, 73.3% of 
all exports were destined for the European  Union, in particular Italy. Other important destinations 
were Kosovo27 (7.8%) and North  Macedonia  (4.0%) ( Chart  1.2). 
Chart  1.1 Product composition of merchandise trade by main HS  section,  2015 and 2022  
 
Source:  WTO Secretariat calculations , based on the data provided by the authorities.  
 
27 References to Kosovo shall be understood to be in the context of Security Council 
resolution  1244 (1999).  
Chart 1.[ALB]  Product composition of merchandise trade by main HS section, 2015 and 2022
2015 2022
Machinery;
electrical 
equipment
7.0%
Textiles & 
textile
articles 
14.4%Footwear, 
headgear, etc.
13.5%Base metals 
and 
articles 
thereof
20.9%Prepared food, 
beverages and 
tobacco
3.8%
Total:   
EUR 1,738 
millionTotal:  
EUR 4,071 
million  
Base metals 
& articles 
thereof
10.0%Vegetable products  
5.2%
Textiles and textile 
articles
10.1%Live animals and 
products 3.5%Live animals 
and products 
3.4%
Textiles and 
textile articles
8.9%Mineral 
products 
22.2%
Base metals &
articles thereof
12.0% Total:   
EUR 3,900 
millionTotal:   
EUR 8,007 
million Other 13.4%
Source: WTO calculations based on the data provided by the authorities.Other 
16.8%Other
14.1%
Transport 
equipment
6.5%Other
11.2%
Chemicals 
7.8%Transport 
equipment
6.5%Prepared food, 
beverages & 
tobacco  
8.1%
Machinery;
electrical 
equipment
15.1% Machinery; 
electrical 
equipment
13.2% 
Plastics & 
rubber
4.5% Plastics & 
rubber 4.4% Mineral 
products
11.1%Mineral 
products
18.1%Prepared food, 
beverages & 
tobacco  
7.9%Vegetable 
products
4.9%Exports including re -exports (f.o.b.)
Imports (c.i.f.)Vegetable 
products
4.4%
Mineral 
products
26.6%
Vegetable 
products  
3.3%
Chemicals 
9.4%Machinery;
electrical 
equipment
3.8%
Textiles & 
textile
articles 
18.9%Footwear, 
headgear, 
etc.
18.2%Base metals 
and 
articles 
thereof
14.1%Prepared food, 
beverages and 
tobacco
2.8%WT/TPR/S/ 449 • Albania  
 
- 16 - 
 
  Chart  1.2 Direction of merchandise trade,  2015 and 2022  
 
a References to Kosovo shall be understood to be in the context of Security Council 
resolution  1244 (1999). 
Source:  WTO Secretariat calculations , based on the data provided by the authorities.  
1.24.  Some firms in Albania appear to be integrated into regional value chains. Roughly 20% of 
imports fall under the inward processing regime (valued at EUR  1.6 billion in  2022), and more than 
half (54%) of total exports were classified as re -exports  (valued at EUR  2.2 billion in  2022), 
indicating the participation of companies in value chains. Re -exports (near -exclusively exports 
imported under an inward processing scheme and (re -)exported after processing) were dominated 
by textile and textile articles as well as footwear (nearly all exports being re -exports), followed by 
base metals, and machinery and electrical equipment (in particular insulated cables or wires).  
1.25.  Accordi ng to national data provided by the authorities28, 47% of non -fuel imports were 
classified as intermediate goods29 in 2022, slightly more than the 45% in  2015, part of which entered 
under the inward processing regime ( Chart  1.3). The share of intermediate goods in exports also 
 
28 A similar analysis using UN Comtrade data was not feasible as a significant and vary ing share of trade 
flows is classified under HS  Chapter  99 (special purpose) at the time of writing.  
29 WTO Secretariat c alculations , based on the classification of Broad Economic Categories, rev.  4, 
developed by the UN Statistical Commission.  
United States 0.9%
Italy
50.9% Other EU -27
24.2%Türkiye 2.9%Serbia 1.3%Kosovo 8.6%North Macedonia 2.6%China 2.7%Other 5.9%Chart 1.[ALB]  Direction of merchandise trade, 2015 and 2022
2015 2022
Exports including re -exports(f.o.b.)
United 
States
2.8%
Italy
43.4%
Other EU -27
29.8%Türkiye 1.3%Serbia 2.8%Kosovo 7.8%North Macedonia 4.0%China 2.0%Other
6.0%
a
Total:  
EUR 1,738 
millionTotal:  
EUR 4,071 
million
Italy
30.2%
Other EU -27
30.4%Switzerland
1.5%Türkiye
8.0%Serbia
3.8%Russian 
Federation 2.2%China
8.6%Saudi Arabia, 
Kingdom of
0.1%Other
15.1%Imports (c.i.f.)
Italy
21.6%
Other EU -27
29.9%
Switzerland
2.3%Türkiye
12.1%Serbia 3.4%Russian 
Federation 1.1%China 8.1%Saudi Arabia, 
Kingdom of
3.6%Other
17.9%
Total:  
EUR 3,900
millionTotal:  
EUR 8,007
million
Source:  WTO calculations based on the data provided by the authorities.a
a.      References to Kosovo shall be understood to be in the context of UN Security Council Resolution 1244 (1999).WT/TPR/S /449 • Albania  
 
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  increased, from less than 35%  to more than 40% over the same period, with exports of parts and 
accessories of transport equipment increasing strongly from EUR  10 million in  2015 to 
EUR 140 million in  2022, primarily as re -exports.  
Chart 1.3 Trade in intermediate goods (IG), by main category (excluding fuels),  2015 -22 
 
Note:  Product classifications are based on BEC  Rev. 4. Shaded bars refer to temporary import and 
re-export data.  
Source:  WTO Secretariat calculations, based on data provided by the authorities.  
1.26.  Trade in intermediate goods covers many types of products. Intermediate goods related to 
minerals and metals, chemicals and photographic supplies, machinery, textiles, wood an d paper, 
and leather and rubber represent important intermediate inputs. Less than 15% of intermediate 
inputs in the product groups of chemicals and photographic supplies, textiles, leather and rubber, 
and non -electric machinery are exported as intermediat e goods again, while there are significant 
exports of clothing and footwear. However, as participation in value chains can also include 
processing from one intermediate to another intermediate stage, it is challenging to draw additional 
conclusions on the exact participation of companies in value chains based on trade data alone.  
Trade in services  
1.27.  Albania's service trade surplus increased significantly as services imports grew much slower 
than services exports, driven by tourism (personal travel services), professional and management 
consulting services (other business services, in particular until  2021), manufacturing services on 
physical inputs owned by others, and road transport services ( Table  1.3). 
1.28.  Albania continues to import nearly 50% of its services from the European  Union, which is also 
the destination of 56% of Albania's services exports, both significantly lower compared to  2017. 
Other important Members of origin are Türkiye, the United  Kingdom, and the United  Arab Emirates, 
while 19% of services e xports are destined for Kosovo.30 
Table  1.3 Trade in services by sector,  2015 -22 
 2015  2016  2017  2018  2019  2020  2021  2022  
Total imports (EUR  million)  1,503  1,599  1,774  1,962  2,141  1,175  1,690  2,400  
 
30 References to Kosovo shall be understood to be in the context of Security Council 
resolution  1244 (1999).  
0%5%10%15%20%25%30%35%40%45%50%
05001,0001,5002,0002,5003,0003,500
2015 2016 2017 2018 2019 2020 2021 2022
IG food & beverages IG other industrial supplies
IG parts & accessories (excl. transport equipment) IG parts & accessories (transport equipment)
IG exports (imports)/ total exports (imports) - excl. IG fuels0%5%10%15%20%25%30%35%40%45%
02004006008001,0001,2001,4001,6001,800
2015 2016 2017 2018 2019 2020 2021 2022(EUR million)Chart 1.[Albania]  Trade in intermediate goods (IG), by main category (excluding fuels)
(EUR million)
Note: Product classifications are based on BEC Rev. 4. Shaded bars refer to temporary import and and re -export data.
Source: WTO Secretariat calculations, based on data provided by the authorities.ImportsExportsWT/TPR/S/ 449 • Albania  
 
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   2015  2016  2017  2018  2019  2020  2021  2022  
  (% of total services imports)  
Manufacturing services on physical 
inputs owned by others  0.1 0.1 0.1 0.1 0.1 0.1 0.0 0.5 
Maintenance and repair services n.i.e.  0.2 0.1 0.1 0.1 0.1 0.1 0.1 0.1 
Transport  11.5 13.2 11.1 10.9 10.5 15.3 13.5 12.6 
Sea transport  3.3 4.4 4.7 4.2 3.2 5.4 5.5 5.3 
Air transport  4.6 4.4 2.1 1.8 2.0 2.5 1.8 2.2 
Other modes of transport  3.5 4.3 4.2 4.7 5.2 7.1 6.0 5.0 
Postal and courier services  0.1 0.1 0.1 0.2 0.1 0.3 0.2 0.1 
Travel  74.2 71.3 71.1 72.7 73.9 56.8 63.4 73.8 
Business  19.0 17.9 17.1 16.7 16.6 17.5 21.2 22.8 
Personal  55.2 53.4 54.0 56.0 57.4 39.3 42.1 51.0 
Construction  0.2 0.1 0.1 0.0 0.1 0.4 4.0 0.2 
Insurance and pension services  1.6 1.8 2.0 1.2 2.0 2.0 2.5 2.5 
Financial services  1.5 0.4 0.4 1.4 0.3 1.1 0.9 0.8 
Charges for the use of intellectual 
property n.i.e.  1.5 1.3 0.7 1.1 1.5 2.9 1.7 1.3 
Telecommunications, computer, and 
information services  3.6 3.7 3.7 3.1 3.5 5.6 3.7 2.5 
Telecommunications services  2.9 3.1 2.2 1.6 1.3 2.2 1.3 1.1 
Computer services  0.7 0.5 1.4 1.4 2.0 3.2 2.3 1.4 
Information services  0.1 0.1 0.1 0.1 0.1 0.2 0.1 0.0 
Other business services  2.8 3.3 4.2 3.9 3.9 8.4 5.8 4.0 
Research and development services  0.0 0.0 0.1 0.0 0.1 0.1 0.1 0.2 
Professional and management 
consulting services  0.7 1.1 3.4 3.1 3.3 7.3 5.4 3.4 
Technical, trade -related, and other 
business services  2.1 2.1 0.7 0.7 0.5 1.0 0.3 0.4 
Personal, cultural, and recreational 
services  1.4 1.3 0.8 0.3 0.5 0.6 0.3 0.4 
Audiovisual and related services  0.1 0.2 0.6 0.2 0.2 0.1 0.1 0.2 
Other personal, cultural, and 
recreational services  1.2 1.1 0.2 0.1 0.2 0.5 0.2 0.2 
Government goods and services n.i.e.  1.4 3.4 5.8 5.0 3.9 6.6 4.0 1.8 
Total exports (EUR  million)  2,028  2,396  2,856  3,073  3,405  2,226  3,486  4,801  
  (% of total services exports)  
Manufacturing services on physical 
inputs owned by others  11.9 12.4 11.7 13.6 13.3 19.7 14.5 13.5 
Maintenance and repair services n.i.e.  0.4 0.8 0.2 0.2 0.2 0.3 0.2 0.2 
Transport  7.8 7.6 8.3 8.4 7.2 8.0 9.5 10.6 
Sea transport  5.0 4.8 4.1 3.5 0.4 0.2 0.8 1.4 
Air transport  1.6 1.8 2.4 2.8 2.7 3.1 1.6 2.3 
Other modes of transport  1.1 1.0 1.7 2.1 3.9 4.4 6.8 6.7 
Postal and courier services  0.1 0.1 0.1 0.1 0.1 0.3 0.4 0.2 
Travel  66.7 63.9 59.9 60.4 61.2 44.4 55.1 59.1 
Business  15.1 13.2 11.6 9.7 9.2 5.8 1.3 1.5 
Personal  51.6 50.7 48.3 50.6 52.0 38.7 53.9 57.6 
Construction  0.2 0.3 0.3 0.1 0.2 0.3 0.3 0.6 
Insurance and pension services  0.2 0.3 0.2 0.2 0.4 0.2 0.2 0.5 
Financial services  0.1 0.1 0.0 0.2 0.1 0.5 0.2 0.3 
Charges for the use of intellectual 
property n.i.e.  0.1 0.1 0.3 0.4 0.5 0.6 0.5 0.3 
Telecommunications, computer, and 
information services  5.0 4.7 3.0 2.2 2.8 3.2 2.8 3.2 
Telecommunications services  4.5 4.5 2.1 0.9 1.4 0.8 0.4 0.3 
Computer services  0.5 0.2 0.7 1.2 1.4 2.3 2.4 2.9 
Information services  0.0 0.0 0.2 0.1 0.1 0.1 0.0 0.0 
Other business services  5.1 7.6 13.8 12.5 12.2 18.7 14.5 10.3 
Research and development services  0.1 0.0 0.0 0.0 0.0 0.0 0.0 0.0 
Professional and management 
consulting services  2.4 5.6 12.6 11.4 10.5 17.4 13.3 9.0 
Technical, trade -related, and other 
business services  2.6 2.0 1.2 1.0 1.7 1.3 1.2 1.3 
Personal, cultural, and recreational 
services  0.7 0.7 0.6 0.4 0.4 0.7 0.6 0.8 
Audiovisual and related services  0.1 0.1 0.3 0.3 0.2 0.2 0.2 0.2 
Other personal, cultural, and 
recreational services  0.6 0.6 0.3 0.1 0.2 0.5 0.4 0.6 WT/TPR/S /449 • Albania  
 
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   2015  2016  2017  2018  2019  2020  2021  2022  
Government goods and services  n.i.e. 1.9 1.5 1.5 1.3 1.7 3.3 1.6 1.1 
Note Where percentages do not add  up to 100%, this is due to rounding.  
Source:  WTO Secretariat calculations, based on WTO  STATS. Viewed  at: https://stats.wto.org/ ; Bank of 
Albania, Main Data for Balance of Payments . Viewed  at: https://www.bankofalbania.org/Statistics/  
External_sector_statistics/Balance_of_Payments/Main_data_for_Balance_of_Pay ments.html ; and 
information provided by the authorities . 
1.7.2   Trends and patterns in FDI  
1.29.  The total FDI stock in Albania more than doubled during the review period in nominal 
EUR terms, with the European  Union accounting for th e majority of FDI, although its share in the 
total continuously declined to 54% from the nearly two  thirds it accounted for in  2015, and the 
importance of various EU  member  States in the total changed. Switzerland emerged as a major 
investor, accounting fo r 17% of the total stock, significantly more than the 2% it held in  2015 and 
largely related to investments in the Trans -Adriatic pipeline, while the sale of Greek telecom 
operators and banks to other investors reduced the footprint of Greek FDI ( Table  1.4). Nearly 
one third of FDI went to the electricity sector, followed by mining and quarrying (15% of the FDI 
stock), financial and insurance activities (12%), information and communication (11%), and real 
estate (10%). In terms of net flows between  2015 and 2022, the electricity sector accounted for 
37% (including investments in the Trans -Adriatic pipeline), mining and quarrying for 17%, and real 
estate for 15%.31 
Table  1.4 FDI stock by major partner in Albania,  2015 -22 
(EUR million)  
 2015  2016  2017  2018  2019  2020  2021  2022  Share 
(% of 
total)  
in  
2022  Growth 
rate 
(2015 -
22) 
FDI stock in 
Albania  4,981.7  5,677.3  6,456.1  7,455.2  7,974.1  8,482.0  9,543.7  11,338.8  100.0  12.5 
EU-27, of which:  3,265.5  3,319.7  3,606.7  3,987.4  4,262.9  4,565.1  5,155.6  6,170.1  54.4 9.5 
Netherland  702.8  718.0  826.8  1,017.0  1,209.3  1,383.8  1,558.2  1,866.2  16.5 15.0 
Italy 547.5  604.4  610.1  690.9  753.2  866.2  1,014.1  1,201.8  10.6 11.9 
Bulgaria  14.7 18.1 22.3 25.2 478.1  456.8  682.3  715.8  6.3 74.2 
Austria  386.9  359.6  447.5  516.7  549.7  597.7  631.5  709.7  6.3 9.1 
France  75.5 88.1 178.1  306.6  307.4  297.0  374.8  445.1  3.9 28.8 
Germany  137.2  122.7  111.5  126.7  133.2  148.6  208.0  311.4  2.7 12.4 
Hungary  0.1 0.4 0.6 3.3 85.5 91.3 114.3  294.6  2.6 236.7  
Cyprus  140.3  142.1  144.6  165.1  199.9  182.8  200.9  234.0  2.1 7.6 
Greece  1,204.8  1,232.6  1,216.8  1,071.6  474.2  460.9  257.2  211.6  1.9 -22.0 
Switzerland  120.6  550.1  893.7  1,315.5  1,492.1  1,665.9  1,760.2  1,890.8  16.7 48.2 
Canada  691.5  739.5  883.8  1,000.6  1,114.9  1,118.6  1,204.6  1,450.2  12.8 11.2 
Türkiye  411.0  512.9  501.3  604.7  596.2  633.7  721.1  843.6  7.4 10.8 
United  States  94.5 80.8 79.1 69.4 81.8 88.8 160.9  220.5  1.9 12.9 
Kosovoa 28.9 41.6 45.5 73.4 85.7 99.6 138.9  212.4  1.9 33.0 
United  Kingdom  23.8 38.4 51.2 61.5 76.3 80.0 97.1 115.8  1.0 25.4 
Lebanese  Republic  58.7 58.4 59.3 64.6 63.7 68.9 84.2 91.8 0.8 6.6 
North  Macedonia  36.0 40.9 40.6 31.4 37.2 41.8 62.1 76.0 0.7 11.3 
a References to Kosovo shall be understood to be in the context of Security Council 
resolution  1244 (1999).  
Source:  Bank of Albania, External Sector Statistics . Viewed  at: 
https://www.bankofalbania.org/Statistics/External_sector_statistics/ .
 
31 Bank of Albania, External Sector Statistics . Viewed  at: 
https://www.bankofal bania.org/Statistics/External_sector_statistics/ . WT/TPR/S/ 449 • Albania  
 
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  2  TRADE AND INVESTMENT REGIMES  
2.1  General framework  
2.1.  According to its Constitution, Albania is a parliamentary republic. The State is headed by a 
President with largely ceremonial responsibilities, elected by the National Assembly. The Assembly 
is constituted of 140  members elected by general election for four -year terms, us ing a system of 
proportional representation. The President appoints the Prime Minister based on a proposal of the 
National Assembly.  
2.2.  The executive rests with the Council of Ministers, consisting of the Prime Minister, a Deputy 
Prime Minister, and Ministers . The Council of Ministers exercises every state function that has not 
been given to the bodies of other state or local government authorities (Article  95.2 of the 
Constitution).  
2.3.  No changes have been made since the previous Review regarding the functioning  of the 
Constitutional Court or the hierarchy of legal instruments, which remains as follows: (i)  the 
Constitution; (ii)  ratified international agreements; and (iii)  domestic laws and legal acts issued by 
the Council of Ministers. Draft laws approved by th e National Assembly have to be promulgated by 
the President, who has the right to send them back for review to the Assembly. Laws enter into force 
15 days after their publication in the Official  Gazette . The President has authority to sign 
international ag reements, most of which must be ratified by the Assembly through a simple majority 
vote. 
2.4.  All legal instruments are published in official sources, albeit only in Albanian. Current and past 
consolidated versions of legal texts are accessible without charge o n the website of the 
Official  Gazette ( Box 2.1). 
Box 2.1 How to access legislation  
For information about Albanian legal instruments, visit the website of the Official Gazette 
(https://qbz.gov.al/ ). Text of normative acts can be found searching by (i)  type of document; 
(ii) the document number; and (iii)  the year of publication. The Gazette also allows users to view 
older versions of acts and gen erally presents links to acts amending a specific act. Although 
available only in Albanian, the website can be easily browsed using translation tools embedded in 
most web browsers.  
2.5.  The judicial system consists of the High Court (Supreme Court), courts of appeal, and courts 
of first instance. Since  2012, administrative courts (and courts of appeal) have been in place, and 
special courts against corruption, part of a Specialized Structure for Anti -Corruption and Organized 
Crime  (SPAK), have been fully operat ional since  2020 following the 2016 judicial reforms.1 While the 
establishment of dedicated commercial courts has been discussed for many years, such courts do 
not yet exist, but district courts have had dedicated sections dealing with commercial courts 
since 2016.2 The Constitutional Court settles constitutional disputes, which can be raised by a wide 
array of actors, and makes the final interpretation of the Constitution, with its decisions being final.3 
2.6.  Reforms, starting in  2014 and aiming to strength en the judicial system, are seen as a key 
element for EU  accession and are ongoing (Section  2.3.2). In  2016, as part of the judicial reform 
and other legislative changes such as the adoption of eight  key laws, the Constitution was amended 
to restructure th e judicial system and increase its independence and efficiency.  The reforms, 
inter alia, modified the functioning of the Constitutional Court, the High Court, and the Prosecutor 
General to ensure their independence and integrity4, and they established new institutions for the 
 
1 European Commission (2020), Albania 2020 Report , SWD  (2020) 354  final. 
2 Law No. 98/2016, Article  23; and Civil Procedure Code (Law  No. 8116/1996), Articles  320 and 
334-336. 
3 Constitution, Articles  124-134. 
4 Bakiasi, M. (2021), Albanian Judiciary under Construction , Europeum Policy Paper. Viewed  at: 
https://www.europeum.org/data/articles/albania -judiciarypp.pdf . WT/TPR/S /449 • Albania  
 
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  self-governing of the judiciary, such as the High Judicial Council, a High Prosecutorial Council, and 
the Justice Appointment Council, which all started to operate in  2019.5 
2.7.  An important element of the refor m also aimed at addressing perceived corruption and included 
a re-vetting of more than 800  officials in the Albanian judiciary based on an assessment of their 
professional skills, integrity, and assets created over the years of their careers in the justice  system. 
At the end of June  2023, the process of vetting of 669  judges, prosecutors, and other subjects of 
vetting by the Independent Qualification Commission had been completed. According to the 
authorities, 233 of those persons were dismissed and another  97 had resigned during the process. 
When cases went into an appeals process, the large majority of initial rulings were maintained.  
2.2  Trade policy formulation and objectives  
2.8.  Since  2017, the Ministry of Finance and Economy has formulated and implemented fisc al and 
economic policies, including those relating to trade, the WTO, standards, and intellectual property.6 
It also leads the institutional process of negotiating FTAs, while an independent Chief Negotiator 
leads the EU accession process. The Ministry of  Finance and Economy implements these policies in 
collaboration with other Ministries and agencies, including the Ministry of Agriculture, the National 
Food Authority, and Customs.  
2.9.  In Albania, trade and trade -related policies form an integral part of broad er economic policies 
aiming to attract foreign investment, foster economic growth, and generate employment. As an 
overarching framework, the National Strategy for Development and European 
Integration  2021-30(SKZHIE  III) was approved in February  2023.7 The Strategy links efforts for 
socio-economic development with the major objective of EU  accession. This objective continues to 
guide economic reforms as it has during the past decade, particularly as Albania started accession 
negotiations in  2022. It also in forms the National Plan for European Integration, which outlines the 
approximation of legislation with the EU  acquis , and which is being updated each year to act as a 
rolling plan (i.e.  one that is updated and prolonged every year).  
2.10.  According to the Constitution, the preparation of laws can be initiated by the Council of 
Ministers, a member of the legislature, or by popular initiative of at least 20,000  voters. Only a 
limited system of Regulatory Impact Assessment  (RIA) accompanying all draft laws is in place, 
focusing primarily on budgetary implications and containing an explanatory memorandum, but there 
is no requirement for more general economic RIA to be part of legislative proposals. During the 
review period, the processes for the preparation of R IAs have improved although the quality of 
analysis in RIAs remains to be rated relatively low.8 RIAs are published alongside legal documents 
during public consultations and when final legal acts are published (on the website of the Parliament).  
2.11.  An Inter -Institutional Group for Trade Policy Coordination and Trade Facilitation 
(IGTPCTF,  referred to as the National Committee for Trade Policy Coordination and Facilitation in the 
previous Review when it was still being set up) was established in  2016, tasked wi th coordinating 
trade policy making (including its alignment with the EU  acquis ) within the Government and with 
the business community. The IGTPCTF also functions as the National Trade Facilitation Committee 
under the WTO  Agreement on Trade Facilitation, a nd since  2020 has also been tasked with covering 
trade in services.9 It is chaired by the Ministry of Finance and Economy and composed of 
representatives from other line Ministries and agencies, including, inter alia, Customs, the National 
Food Authority,  and business representatives. As described in the previous Review, a National 
Economic Council chaired by the Prime Minister continues to discuss cross -cutting economic reforms, 
 
5 European Commission (2019), Albania 2019 Report , SWD  (2019) 215  final. 
6 Other functions of the Ministry of Economic Development, Tourism, Trade and Entrepreneurship 
responsible at the time of the previous Review were transferred to the Ministry of Tourism and the 
Environment (now the Ministry of Environment) as well as the Minister of State for the Protection of 
Entrepreneurship (now Minister of State for Entrepreneurs).  
7 Adopted by Council of Ministers Decision  No. 88/2023. This plan replaced the National Strategy for 
Development and Integration  II 2015-2020. 
8 SIGMA/OECD  (2021), Monitoring Report: The Principles of Public Administration: Albania , p. 56. 
Viewed  at: https://www.sigmaweb.org/publications/Monitoring -Report -2021-Albania.pdf . 
9 Prime Minister Order  No. 104/2020. Viewed  at: http://tregtia.gov.al/images/pdf/3.1 -urdher -km.pdf . 
The order explicitly mentions  the relevant Central European Free Trade Agreement (CEFTA)  protocol, but 
according to the authorities, the IGTPCTF also discusses trade in services more generally.  WT/TPR/S/ 449 • Albania  
 
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  while the Investment Council has promoted public -private dialogue on initiati ves relating to the 
investment climate in broad terms since  2015.10 
2.12.  During the process of drafting strategies or laws, authorities are required to publish drafts, 
ensure interested parties can provide comments, and review these comments. Final draft laws m ust 
include a summary of the comments provided and how they were reflected.11 Since  2016, 
consultation processes have been undertaken electronically using the Electronic Register for Public 
Notices and Consultations12, accessible via the e -Albania portal, but can also include a physical 
meeting.  
2.13.  Coordinated by the IGTPCTF, a first Action Plan on Trade Facilitation 2017 -20 guided policy 
making during the review period and led to some of the reforms described in other parts of the 
report ( Section  3.1.1). Subs equently, a new National Plan for Coordination and Facilitation of Trade 
Policy  2021-23 was adopted, which includes a number of specific measures, including some from 
the previous plan that remained pending.13 According to the authorities, the plan is alig ned with an 
Action Plan for the Establishment of the Common Regional Market of the Western Balkans. Under 
this initiative, the six Central European Free Trade Agreement  (CEFTA) members of the Western 
Balkans in  2020 agreed to establish a Common Regional Ma rket as a step towards the European 
Single Market, aligning rules and standards to those of the European  Union.14 The Business 
Development and Investment Strategy  2021-27 also affects trade -related policies, focusing on 
attracting FDI, SME development, and  human resource development ( Section  2.4). Based on the 
Strategy, the Ministry of Finance and Economy is drafting Export Promotion and Internationalization 
Guidelines  for 2023-27, focusing on SMEs, as well as an Export Strategy.  
2.3  Trade agreements and arrang ements  
2.3.1   WTO  
2.14.  Albania has been a WTO Member since 8  September  2000 and grants at least MFN  treatment 
to all of its trading partners. It is a party to the Information Technology Agreement (accepting the 
expansion of product coverage in  2018) and the Trade Faci litation Agreement (accepted 
on 10 May 2016), while the negotiations to accede to the Agreement on Government Procurement, 
pending since  2007, are expected to resume shortly ( Section  3.3.6). Albania accepted the Protocol 
amending the TRIPS  Agreement on 28  January  2009.  
2.15.  According to the authorities, Albania remains committed to the open, non -discriminatory, and 
rules-based global multilateral trading system, acknowledging the central role the WTO plays in this 
regard. Albania contributes to the discussions a t the WTO and co -sponsored a number of proposals 
and initiatives. It participates in the discussions of the four Joint Statement Initiatives  (JSIs) on 
electronic commerce, investment facilitation, MSMEs, and services domestic regulation. Under the 
latter J SI, Albania has requested the initiation of the certification procedure for its schedule of specific 
commitments.15 Albania has joined the initiatives on trade and environmental sustainability, trade 
and health, and plastics pollution and environmentally s ustainable plastics trade. It endorsed the 
Buenos  Aires Declaration on Trade and Women's Economic Empowerment and is a member of the 
informal working group on gender. Albania expects to deposit the instrument of acceptance of the 
Agreement on Fisheries Sub sidies during 2023 and supports WTO reform, identifying the 
re-establishment of the two -tier WTO dispute settlement system as a priority.  
2.16.  Between January  2016 and the end of August  2023, Albania submitted 114  notifications to 
the WTO, primarily regarding a griculture, SPS, and TBT, including 1  COVID -19-related notification. 
 
10 Investment Council. Viewed  at: https://www.i nvestment.com.al/ ; and WTO document 
WT/TPR/S/337/Rev.1, 1  August  2016, Section  2.1.2.  
11 Law No. 146/2014.  
12 Electronic Register for Public Notices and Consultations. Viewed  at: https://konsultimipublik.gov.al/ . 
13 IGTPCTF Decision  No. 50/2021. Viewed  at: http://tregtia.gov.al/images/pdf/2. -Plani-Kombetar -i-
Koordinimit -te-Politikave -Tregtare -dhe-Lehtesimin -e-Tregtise.pdf . 
14 The Common Regional Market would cover free movement of goods, services, people, and capital, 
and represent a regional digital area, an investment area, and an industrial and innovation area, with 
implementation of the action plan supported by the CEF TA Secretariat and Regional Cooperation Council. 
Regional Cooperation Council, Common Regional Market . Viewed  at: https://www.rcc.int/pages/143/common -
regional -market . 
15 WTO document  S/C/W/417, 20  December  2022; and the adoption of Law  No. 91/2022.  WT/TPR/S /449 • Albania  
 
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  Nevertheless, at the end of June  2023, at least 10  notifications remained outstanding, primarily in 
the areas of domestic support in agriculture, but also regarding quantitative restricti ons in place for 
2022-24 (Table  A2.1). As concerns notification requirements relating to agriculture, the authorities 
expect to request technical assistance from the Secretariat to help alleviate capacity constraints. 
Albania has also regularly submitted t ariff data to the WTO Integrated Database  (IDB).  
2.17.  Since its accession to the WTO, Albania has not participated in any trade disputes as 
complainant, respondent, or third party.  
2.3.2   Regional and preferential agreements  
2.18.  During the review period, Albania signed 1  additional FTA, bringing the total number of 
agreements to 5, while continuing to cover 39  partners. The agreements in force are the CEFTA16, 
the Albania -EFTA FTA, an FTA with Türkiye, and the Albania -EU Stabilisation and Association 
Agreement  (SAA). A new  FTA between Albania and the United  Kingdom was signed on 
5 February  2021 and entered into force on 3  May 2021 to continue the trade relationship formerly 
covered under the Albania -EU SAA.17 
Relationship with the European  Union  
2.19.  Albania has had the status of EU candidate country since  2014, and in March  2020, the 
European  Union agreed to open accession negotiations. In July  2022, Albania and the 
European  Union held their first "intergovernmental conference", with the screening, a detailed 
examination  of the alignment of Albania's laws with the EU  acquis , under way.18 Once Albania meets 
certain initial criteria (so -called opening benchmarks), negotiations using the revised EU  accession 
framework are expected to start.  
2.20.  Under the revised accession framew ork, the negotiations cluster covering fundamental issues 
such as those relating to the judiciary and fundamental rights, justice, or financial control will be 
central to determining overall progress in the negotiations, while corruption -related issues wil l be 
mainstreamed throughout.19 According to the authorities, reforms in these areas will therefore be 
undertaken with priority. Under the Albania -EU SAA, regular Albania -EU SAA Council meetings, as 
well as meetings of the other joint institutions established under the SAA, continue.  
2.3.3   Other agreements and arrangements  
2.21.  Albania is eligible for trade preferences under the Generalized System of Preferences (GSP) 
of Australia, Japan, New  Zealand, and the United  States, and was eligible for such preferences by 
the Eurasian Economic Union until 2021.20 Albania also benefits from the European  Union's 
autonomous trade preferences for the Western Balkans for products not fully liberalized under the 
Albania -EU SAA. They have been extended to 2025.21 Albania does not grant GSP treatment to any 
countri es. 
2.22.  In addition, Albania signed four new economic and technical cooperation agreements or 
memoranda during the review period.  
2.4  Investment regime  
2.23.  The Ministry of Finance and Economy designs policies affecting the investment and business 
environment, with a l arge number of line Ministries also involved in the regulation of specific 
economic activities. Activities were most notably guided by the Business Development and 
 
16 During the review period, additional protocols on trade in goods and services entered into force and 
the six CEFTA members of the Western Balkans agreed to es tablish a Common Regional Market.  
17 WTO document WT/REG454/N/1, S/C/N/1055, 4  May 2021.  
18 According to the Conference, Albania has fully aligned with the EU Common Foreign and Security 
Policy decisions and declarations.  
19 Commission Communication COM(2020) 57, Enhancing the Accession Process – A Credible EU 
Perspective for the Western Balkans . 
20 Preferences applied since October  2016 (also those previously granted by the Russian  Federation) and 
were revoked from October  2021 in the context of a broader revis ion of the scheme.  
21 WTO document WT/TPR/S/442, 11  April 2023.  WT/TPR/S/ 449 • Albania  
 
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  Investment Strategy  (BIDS) 2014 -20, which was replaced by a new strategy for 2021 -27 in 2021.22 
The Albanian Investment Development Agency  (AIDA) is the official investment agency in Albania 
(Section  3.3.1), also providing aftercare services to investors.  
2.24.  The new strategy focuses on three main objectives, namely (i)  attracting investment; 
(ii) SME development, entrepreneurship, and innovation; and (iii)  human capital development, 
addressing some of the key concerns expressed by the private sector in recent assessments (see 
below). The strategy for 2021 -27 builds on the previous strategy, takes up some of the measures 
already included under it23, and contains measurable indicators to facilitate the evaluation of the 
strategy.  
2.25.  Attracting FDI and supporting economic growth remain key objectives of these policies, and 
during the review period, the Gove rnment undertook a number of reforms to improve the investment 
and business environment. A framework for special economic zones has been in place since  2007, 
and was revised in  2015 to name such zones Technology and Economic Development Areas  (TEDAs). 
The first TEDA was established in  2015. TEDAs aim to attract FDI by creating predictable investment 
conditions ( Section  3.3.1). 
2.26.  Since  2015, the authorities have also intensified their efforts to formalize the economy by 
incentivizing formalization (exempting s mall businesses from the profit tax ( Section  3.3.1) and 
automating tax declarations), while increasing tax audits and other controls, coupled with increasing 
penalties. As a result, the registration of firms and share of formal employment increased, while tax 
revenues also increased. Still, the informal economy was estimated to account for around 30% of 
GDP (in  2018) and 37% of employment was informal in  2019 ( Section  1.1). 
2.4.1   Regulatory framework  
2.27.  The regulatory environment for domestic and foreign investment is primarily spelled out in 
Law No. 9901/2008 on Entrepreneurs and Companies, while other laws also affect the overall 
investment and business environment. Law  No. 7764/1993 on Foreign Investments establishes the 
framework for foreign investment. Until 201 9, it contained a special state -protection regime which, 
as previously, was not used during this review period.  
2.28.  The Strategic Investment Law (Law  No. 55/2015), described in the previous Review and not 
significantly amended during the review period24, estab lishes specific procedures for domestic and 
foreign investors to simplify administrative procedures and reduce certain investment -related risks. 
It aims at attracting investment in strategic sectors defined in the Law25, setting a minimum 
threshold for inv estments in the sectors to be considered strategic. A Strategic Investment 
Committee, headed by the Prime  Minister, approves projects as strategic and monitors the 
implementation of the investment -facilitating measures under the Law. These facilitating mea sures 
include prioritizing, and treating in an accelerated manner, the issuance of relevant licences and 
permits, and the provision of services to investors through a single window. In addition, strategic 
investments can benefit from government investments  in relevant auxiliary infrastructure such as 
roads, waterways, sewers, electricity and telecommunications, the use of lands or other real estate 
owned by the State, or provision of support for certain expropriations for public interest.26 The 
deadline for  applications under the Law has repeatedly been extended and currently is 
December  2023. According to the authorities, a new Investment Law to replace both the Law on 
Foreign Investments and the Strategic Investment Law, which includes provisions on domest ic 
investment, is being drafted and is expected to be approved this year.  
2.29.  Generally, no restrictions on foreign ownership or control in domestic corporations are in place 
(except regarding road transport, broadcasting, and companies with fishing rights), a nd no prior 
 
22 Council of Ministers Decision No.  466/2021.  
23 The 2021 -27 strategy points out that 19  measures of the previous strategy have been implemented, 
19 partially implemented, and 7  have not been implemented (p.  24). 
24 WTO document  WT/TPR/S/337/Rev.1, 1  August  2016.  
25 As during the previous Review, the sectors remain energy and mining; transport, electronic 
communications infrastructure and urban waste; tourism; and agriculture. They also incl ude investment in 
TEDAs and areas designated as specific development priority areas, with the Council of Ministers able to 
determine specific subsectors. No information was available whether such priority areas or specific subsectors 
have been designated.  
26 Law No. 55/2015, Articles 26 -28. WT/TPR/S /449 • Albania  
 
- 25 - 
 
  authorization for FDI is required in principle. Some restrictions regarding the purchase of land remain 
in place as foreigners cannot purchase agricultural land unless they set up a company registered in 
Albania. They can lease such land for up  to 99 years, however.27 
2.30.  According to Law  No. 9901/2008, companies can be established as partnerships, limited 
partnerships, limited liability companies, or joint -stock companies. Companies, as well as individual 
entrepreneurs, must register with the Natio nal Business Center (NBC)28, under the Ministry of 
Finance and Economy, according to Law No.  9723/2007 (as amended). Since  2020, registration can 
be made only electronically via the e -Albania portal, with data in the publicly accessibly company 
registry on ly stored in electronic format. Law No.  9901/2008 also allows for the establishment of 
branches and representative offices of foreign companies.  
2.31.  Law No. 10081/2009 spells out 49  activities requiring licences or permits, divided into 
14 areas of economic ac tivity. In total, there are 36  licences issued by the NBC, 69  licences and 
permits issued jointly by the NBC and a line Ministry, and 27  permits and licences issued exclusively 
by other regulators and not the NBC. Licensing and permitting requirements appl y regardless of 
nationality. According to the BIDS  2021-27, a number of licences are being eliminated by amending 
relevant sector legislation; between 2016 and May  2023, 13  licences were removed.  
2.32.  On its website, the NBC provides a list of all existing permits and operating licences that 
businesses in various sectors might require to operate, and the list also provides additional detailed 
information regarding all of those the NBC is involved in issuing, although the authorities indicate 
that th e website is being updated and might not always fully reflect most recent changes.29 
Companies have been able to apply for licences and permits issued by the NBC (or jointly with the 
NBC) only via the e -Albania portal since  2020, and information on all iss ued licences and permits is 
published on the NBC website. Since May  2022, licences and permits have also been issued 
electronically, removing all physical interaction between businesses and regulators, according to the 
authorities. All other business inter actions with the NBC also have to be done via the e -Albania 
portal, with the NBC offering 183  services online relating to licences, as well as services related to 
the commercial register or the register of beneficial owners. Other licences or permits are i ssued by 
the relevant Ministries or agencies, which are also tasked with providing relevant information.  
2.33.  The electronic provision and delivery of public services increased significantly during the 
review period, as additional services continue to be added to the e -Albania portal, administered by 
the National Agency for Information Society. Between 2016 and 2022, 812  public services were 
added to the portal, and at the beginning of 2023, 82  state institutions offered 1,227  services 
electronically via the por tal.30 According to the authorities, these account for about  95% of all 
services offered, and they are offered exclusively online.  
2.34.  Companies are generally subject to corporate income tax of 15%, with smaller firms subject 
to lower rates, while a number of (temporary) changes to tax rates were implemented as a response 
to COVID -19 during the review period ( Section  3.3.1). However, tax administration is frequently 
cited as a major challenge in undertaking business in Albania. According to Enterprise Survey da ta, 
companies need to make 35  tax payments per year, more than twice the average in the region.31 
2.35.  In 2017, a new Bankruptcy  Law (No. 110/2016) replaced a 2002  law. It aimed to modernize 
and strengthen the insolvency framework by making it more efficient an d transparent. For example, 
the Law introduced the concept of accelerated reorganization using hybrid procedures (combining 
out-of-court and court procedures). It does not apply to insurance societies, banks, pension funds, 
and other deposit -takers for whi ch insolvency is regulated under a specific law ( Section  4.3.1). 
2.36.  Other challenges affecting the business and investment environment include issues of 
corruption, a lack of predictability regarding judicial outcomes, workers' skills, and infrastructure. 
The provisions on domestic arbitration were repealed from the Civil Code in  2013, and a draft law 
 
27 Law No. 8337/1997, Article  4. 
28 National Business Center . Viewed  at: https://qkb.gov.al/ . The Center was established by Law 
No. 131/2015.  
29 NBC, Information on Licenses and Permits . Viewed  at: https://qkb.gov.al/informacion -mbi-
proceduren/regjistri -i-licencave -autorizimeve -dhe-lejeve/informacion -mbi-licensat -autorizimet -dhe-lejet/ . 
30 E-Albania portal. Viewed  at: https://e -albania.al/ . 
31 World Bank (2022), Country Private Sector Diagnostic: Creating Markets in Albania . WT/TPR/S/ 449 • Albania  
 
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  on arbitration is being discussed in Parliament.32 According to the World  Bank's latest Enterprise 
Survey data, 43%  of firms cite corruption as a major obstacle, while according to another World 
Bank survey (see fn  33), 30%  of firms have a negative perception of the efficiency and quality of 
administrative services in court. Domestic and smaller firms seem to be more affected by corruption 
as such, compared to foreign firms, while the operations of the court system  seem to particularly 
affect foreign firms. Both issues are intrinsically linked, making a clear separation of challenges 
difficult, as corruption is also a major contributor to the poor perception of the judicial system.33 
These challenges are also reflec ted in the findings of (i)  the latest Global Competitiveness Index 
where Albania ranks  136 of 141 in terms of judicial independence and  85 of 141 regarding the 
incidence of corruption; (ii)  the IMF34; and (iii)  the Worldwide Governance Indicators, where Al bania 
continues to rank in the bottom third of the distribution on the control of corruption and the bottom 
half of the distribution on the rule of law in  2021, despite improvements since  2011.35 
2.37.  The Government is aware of these challenges and continues to  implement its comprehensive 
judicial reform programme in place as part of its EU  accession efforts, most recently guided by the 
Intersectoral Justice Strategy 2021 -25.36 The Strategy against Corruption 2015 -20 has been 
extended to 2023.37 Following the es tablishment of an Inter -institutional Anti -corruption Task Force 
in 2018 and a Special Unit Against Corruption and Tax Evasion in  2020, both were integrated into a 
consolidated administrative investigation structure in  2021 under the Ministry of Justice. E fforts to 
increase the delivery of government services by electronic means form part of the anti -corruption 
initiatives. They are complemented with awareness -raising as well as investigations and criminal 
prosecutions, including of former high -ranking stat e officials, some of whom have been convicted.38 
2.38.  In addition, available workforce skills do not seem to respond to the requirements of many 
firms, making it challenging to find the right workers, especially for high -skilled occupations and for 
foreign -owne d firms. This situation seems to have deteriorated between  2013 and  2019, and the 
skills gap seems to be particularly pronounced among younger workers, as also reflected in low 
Program for International Student Assessment  (PISA) scores, and related to rela tively high 
emigration rates especially among higher -skilled persons.39 While electricity supply and losses 
resulting from outages generally improved, nearly half of firms continued to use their own generators 
at times in  2019.  
2.4.2   International cooperation  
2.39.  Albania has concluded 45  bilateral investment treaties  (BITs), 1  of which (with the 
United  Arab Emirates) entered into force during the review period.40 According to the authorities, a 
BIT with Kosovo41 also entered into force in  2020. In addition, Albania's  FTAs (except the one with 
the United  Kingdom which has a BIT with Albania) also contain investment provisions, and Albania 
 
32 Parliament, Draft Law on Arbitration in the Republic of Albania . 
https://www.parlament.al/dokumentacioni/aktet/ccca84c7 -7669-4160-b8a9-f6f5311887e2 . 
33 World Bank  (2022), Country Private Sector Diagnostic: Cre ating Markets in Albania . 
34 IMF (2022), Albania: Staff Report for the 2022 Article  IV Consultation , IMF Country Report 
No. 22/362.  
35 World Bank, Worldwide Governance Indicators . Viewed  at: 
https://in fo.worldbank.org/governance/wgi/ . "Control of corruption" measures "perceptions of the extent to 
which public power is exercised for private gain, including both petty and grand forms of corruption, as well as 
'capture' o f the state by elites and private interests". The "rule of law" captures "perceptions of the extent to 
which agents have confidence in and abide by the rules of society, and in particular the quality of contract 
enforcement, property rights, the police, an d the courts, as well as the likelihood of crime and violence".  
36 Adopted by Council of Ministers Decision  No. 823/2021. The draft strategy and its indicators can be 
viewed at: https://kon sultimipublik.gov.al/Konsultime/Detaje/357 . 
37 Ministry of Justice, Intersectoral Strategy Against Corruption . Viewed  at: 
https://www.drejtesia.gov.al/strategjia -ndersektoriale -kunder -korrupsionit/ . The prolongation was adopted by 
Council of Ministers De cision  No. 516/2020.  
38 European Commission (2022), Albania  2022 Report , SWD  (2022) 332  final. 
39 World Bank (2022), Country Private Sector Diagnostic: Creating Markets in Albania . 
40 UNCTAD, International Investment Agreements Navigator . Viewed  at: 
https://investmentpolicy.unctad.org/international -investment -agreements/countries/2/albania . And 
information provided by the  authorities.  
41 References to Kosovo shall be understood to be in the context of Security  Council 
resolution  1244 (1999). This BIT is not listed on the UNCTAD Navigator.  WT/TPR/S /449 • Albania  
 
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  is party to the Energy Charter Treaty. Albania has also concluded 44  double taxation agreements, 
3 of which (Kingdom  of Saudi  Arabia , Israel, and Finland42) have been concluded since  2016.43 
2.40.  Albania is a member of the Multilateral Investment Guarantee Agency, a signatory to the 
1958 New York Convention on the Recognition and Enforcement of Foreign Arbitral 
Awards  (UNCITRAL), is a parti cipant in the European Convention on International Commercial 
Arbitration of 1961, and has ratified the ICSID (International Centre for Settlement of Investment 
Disputes) Convention. During the review period, Albania was a respondent in four investment 
disputes under the Energy Charter and BITs, three of which remain pending and one of which was 
discontinued.44 
2.5  E-commerce  
2.41.  E-commerce is still an infant industry in Albania, but is growing fast. While 28% of consumers 
are estimated to have used e-commerce in 2017, this figure had increased to 38.4% in 2022, though 
it remained far below that of nearby Croatia (61.8%).45 During the pandemic, 18.1% of Albanian 
firms reported having started or increased online business activities46, market revenues r eached 
USD 417 million in 2022, and they are expected to continue growing at double digits. Local actors 
such as Bufalo, Celestino, Neptun, Care to Beauty, and Siren have also emerged.47 A recent 
World  Bank study indicates that e -commerce presents a key gr owth opportunity for Albania and 
outlines key policy actions to further develop e -commerce.48 
2.42.  The Government sees e -commerce as a sector benefiting from the June  2020 National 
Masterplan for the Sustainable Development of Digital Infrastructure for Broadba nd (Section  4.3.2) 
as well as the digital objectives and policy orientations of the SKZHIE  III. An inter -institutional 
working group established in July  2022 by the Ministry of Finance  and Economy , with the 
participation of the private sector, prepared a f irst draft of an e -commerce action plan.  
2.43.  During the period under review, Albania adopted several measures fostering e -commerce 
relating essentially to five areas: (i)  electronic signature; (ii)  consumer protection; (iii)  data privacy; 
(iv) initiatives and import and export of small parcels and shipments; and (v)  CEFTA  e-commerce.  
2.44.  Electronic signature has had full legal effects, including probative force, in Albania since the 
adoption of Law  No. 9880/2008 on Electronic Signature (amended by Law No.  122/2016) . Law 
No. 107/2015 on Electronic Identification and Trusted Services (amended by Law No.  123/2016) 
defines the legal framework for the secure electronic identification, electronic seals, electronic 
transmission services, and website authentication, aiming at transposing the relevant 
EU regulation.49 While the use of an electronic signature is mainly voluntary, all requests in the 
e-Albania portal (Section  2.4) can be completed only online without physical contact since May  2022, 
and the relevant documents are authenticated through electronic seals.  
2.45.  The National Agency for Information Society  (NAIS) provides encryption facilities (so -called 
"public keys") to offer electronic signature and seal services for citizens, businesses, and public 
administr ation. The annual number of signatures generated for the private sector increased 
 
42 Ministry of Finance  and Economy , Albania -Finland, Agreement on the Elimination of Do uble Taxation 
in Relation to Income Tax and the Prevention and Avoidance of Tax Evasion . Viewed  at: 
https://financa.gov.al/shqiperi -finlande -marreveshje -per-eliminimin -e-taksimit -te-dyfishte -ne-lidhje -me-
tatimin -mbi-te-ardhurat -dhe-parandalimin -dhe-shmangien -e-evazionit -tatimor/ . 
43 A list of these agreements is published on the website of the Ministry of Finance  and Economy , not 
reflecting the agreement with Finland yet. Viewed  at: https://www.tatime.gov.al/c/ 6/125/marreveshje -
nderkombetare . 
44 UNCTAD Investment Policy Hub, Investment Dispute Settlement Navigator: Albania . Viewed  at: 
https://investmentpolicy.unctad.org/investment -dispute -settlement/country/2/albania/respondent . 
45 World Bank (202 2), "Helping Albania Seize the Digital Trade Opportunity". Viewed  at: 
https://blogs.worldbank.org/trade/helping -albania -seize-digital -trade -opportunity . 
46 World Bank (2022), "Helping Albania Seize the Digital Trade Opportunity".  
47 Mordor Intelligence, Albania E -Commerce Market Size & Share Analysis  – Growth Trends & Forecasts 
(2023 -2028) . Viewed  at: https://www.mordorintelligence.com/industry -reports/albania -ecommerce -market . 
48 World Bank (2020), Albania E -Commerce Diagnostic – Leveraging the Digital Tra de Opportunity . 
Viewed  at: https://elibrary.worldbank.org/doi/abs/10.1596/35000 . 
49 Regulation  No. 910/2014 on Electronic Identification and Trust Services  for Electronic Transactions in 
the Internal Market and Repealing Directive 1999/93/EC.  WT/TPR/S/ 449 • Albania  
 
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  significantly during the review period with more than 72,000  signatures issued in total ( Table  2.1). 
Following the amendments by Law No.  122/2016, identifications and trusted  services released by 
"Qualified Trust Services Providers" operating in EU  member  States and accredited by the relevant 
supervisory authority have the same legal validity as those operating in Albania.  
Table  2.1 Electronic  signatures  generated  for the private  sector , 2016 -23 
Year 2016  2017  2018  2019  2020  2021  2022  2023a Total  
For citizens/businesses  1,000  800 1,026  1,226  5,519  11,348  13,034  19,608  53,561  
For customs agents  0 0 448 451 508 499 553 409 2,868  
For medical prescriptions 
system e -RX 0 2,000  1,800  2,130  1,750  3,574  2,242  2,368  15,864  
a Data from January to July  2023.  
Source:  Information provided by the authorities.  
2.46.  Consumer protection was reinforced during the period under review and aligned with the 
latest EU  acquis  by amending in 2018 Law  No. 9902/2008 on Consumer Protection and by the 
Council of Ministers Decision No.  1089/2020, modernizing and updating alternative dispute 
settlement mechanisms for consumers. These texts are in line  with Directive  2011/83/EU on 
Consumer Rights and Directive  2013/11/EU on Alternative Dispute Resolution.  
2.47.  The objective of the first text is to empower consumers by regulating the information they 
must receive on sales and services offered in the market, i n business premises, off -premises, and 
in distance contracts. This explicitly includes online shopping. The objective of the second text is to 
increase the level of protection for consumers by ensuring that disputes between traders and 
consumers are handle d by out -of-court structures with alternative dispute resolution procedures, 
and are impartial, transparent, effective, and fair. A General Department on Alternative Dispute 
Resolution of Consumers, under the Ministry of Finance and Economy, will be put in  place in the 
course of 2023.  
2.48.  The legal framework for the protection of personal data consists of Law  No. 9887/2008 on  the 
Protection of Personal Data, as amended and its by -laws, which is fully aligned with the 
previous  EU acquis , i.e. Directive  95/46/EC.  The Commissioner for the Right to Information and 
Protection of Personal Data is the independent authority that supervises and monitors the protection 
of personal data and the right to information. According to the authorities, the Commission is working 
with the support of EU experts on modernized data protection legislation that will transpose the 
present EU  acquis , the so -called General Data Protection Regulation (GDPR).50 
2.49.  Small parcels valued at less than EUR  22 (for online purchases) or EUR  45 (for sma ll parcels 
for personal use) arriving in Albania are not subject to import duties, and a simplified procedure for 
small non -commercial shipments is in place ( Section  3.1.1). Customs treats packages in line with 
the information accompanying the shipment.  
2.50.  Under the Action Plan for the Establishment of the Common Regional Market of the 
Western  Balkans (Section  2.2), a sub -action plan regarding electronic commerce aims to establish 
(i) simplified and more efficient intra -CEFTA elec tronic commerce in line with EU  standards; (ii)  more 
efficient and cheaper customs clearance of parcels in CEFTA, generated by regional electronic 
commerce; and (iii)  regional measures against geo -blocking to increase consumer choice and access 
to goods an d services across the region. The CEFTA joint committee is discussing three draft 
decisions to achieve these goals.51
 
50 Regulation  (EU) 2016/679 on the Protection of Natural Persons with Regard to the Processing of 
Personal Data and on the Free Movement of Such Data.  
51 The decisions, inter alia, aim to create a harmonized legal framework of key rules and principles for 
the development of regional e -commerce, and laying down minimum requirements for harmonizing regulatory 
frameworks for parcel delivery services, includin g enhancing regulatory oversight and increasing transparency.  WT/TPR/S /449 • Albania  
 
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  3  TRADE POLICIES AND PRACTICES BY MEASURE  
3.1  Measures directly affecting imports  
3.1.1   Customs procedures, valuation, and requirements  
3.1.  Albania's new Customs Code (Law No.  102/2014) fully entered into force in June  2017, while 
some of its provisions (regarding Authorized Economic Operators (AEOs), customs simplifications, 
and exemptions) had already applied since January  2015, as outlined in the previou s Review.1 
Implementing regulations for the Custom Code were approved in  2017 by Council of Ministers 
Decision  No. 651. The authorities also indicate that they continued to update, improve, and simplify 
these customs rules, amending them in  2019 and 20202 and issuing a large number of instructions 
and manuals. According to an assessment by the European  Union, the Customs Code is broadly 
aligned with the EU  acquis .3 
3.2.  The General Directorate of Customs, under the Ministry of Finance  and Economy , is responsib le 
for implementing the Customs Code. Besides Customs, the National Food Authority, veterinary 
inspectors, and the border police are present at borders, and the Customs Code foresees 
collaboration among these agencies under the coordination of Customs (Art icle 48). An Integrated 
Border Management Strategy for 2021 -27, prepared by the Ministry of Interior, aims to improve 
physical border infrastructure and cross -border cooperation at joint border crossings with 
neighbouring countries.4 
3.3.  Customs legislation i s published on the Customs website, with secondary legislation published 
often only in Albanian and as PDFs, and the English version did not always seem fully up  to date. 
The website also contains MFN and preferential tariffs for all products5, but it doe s not contain 
detailed information on other requirements by product.  
3.4.  Customs uses a risk -based system embedded in ASYCUDA World, classifying declarations into 
the four typical risk channels based on criteria such as the type of good, origin, value, or impo rter. 
The share of declarations classified into the red channel (documentary and physical checks) stood 
at 8.4% in  2022, lower than the 12.3% in  2016, as the share classified into the yellow channel 
(documentary check) also declined from 83.7% to 61.8%. In dicating falling compliance costs, the 
share of customs declarations classified in the green channel (no additional controls) increased from 
4.0% to 19.7% over the same time, and those in the blue channel (post -clearance audit), newly 
introduced in  2018 an d only applied until 2022, stood at 10.2% in  2022. However, around 30% of 
consignments continued to be scanned at borders in  2022, regardless of their risk classification.6 
There is no automated risk management system integrating the different border agen cies in place, 
but according to the authorities, agencies exchange information at border crossing points. Albania 
does not make use of pre -shipment inspection services. Among other things, the IMF pointed to the 
potential benefits of improving risk -based e nforcement.7 
3.5.  All goods arriving in Albania need to be accompanied by a summary declaration of entry prior 
to arrival to allow Customs to conduct a risk analysis for security and safety purposes. For those 
goods arriving by sea or air, the manifest is used , while the transport document is used for those 
arriving at land borders. At land borders with members of the Central European Free Trade 
Agreement (CEFTA), information is obtained through the Systematic Exchange of Electronic Data 
(SEED) System.  
 
1 WTO document WT/TPR/S/337/Rev.1, 1  August  2016, p.  31. 
2 Council of Ministers Decisions No.  557/2019, No.  626/2019, and No.  142/2020 amended 
No. 651/2017.  
3 European Commission (2022), Albania  2022 Report , SWD  (2022) 332  final. 
4 Council of Ministers Decision No.  1117/2020.  
5 Customs, Customs Tariffs . Viewed  at: https://dogana.gov.al/preferencat/ . A consolidated tariff 
schedule including MFN and preferential tariffs is also annually published on the website. Customs, 
Preferential  Tariffs and Tariff Quotas.  Viewed  at: https://www.dogana.gov.al/d/169/182/249/266/tarifat -
preferentiale -dhe-kuotat -tarifore . 
6 Albanian Customs; and IFC  (2021), Time Release Study: Albania, December  2021, p. 15. Viewed  at: 
https://www.dogana.gov.al/dokument/4002/trs -albania -report . 
7 IMF (2022), Albania: Staff Report for the 2022 Article  IV Consultat ion, IMF Country Report 
No. 22/362, p.12.  WT/TPR/S/ 449 • Albania  
 
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  3.6.  All impo rts into Albania need to be declared at the customs office of entry, where they are 
presented to Customs and placed under a temporary storage regime. In most cases, goods are 
cleared at the destination customs office in the region where the importer is leg ally registered, but 
based on an approved request, or for certain categories of goods (such as fruits and vegetables, or 
live animals), exemptions can be made from the rule of territorial competence with customs 
declarations deposited at the border office where all the necessary verifications are carried out.8 
Under a separate process, 11  operators are authorized to use a system of local clearance, where 
goods are cleared at the importers' premises, rather than the destination customs office.9 Efforts to 
include a module for centralized customs clearance into the IT system are under way with a target 
date of 2028. Once included, AEOs for customs simplification (see below) will also be able to request 
that verification of goods be done at the customs office  of entry under centralized clearance.  
3.7.  Since May  2019, customs declarations must be filed online using an electronic signature, but 
for international transit declarations, the accompanying documentation and a printed copy of the 
declaration are also submit ted to the customs counter on paper.10 The Customs Code also foresees 
the possibility of granting customs authorities access to the relevant IT system of importers, instead 
of importers submitting a declaration, an option that AEOs for customs simplificati on can use. A 
national tax identification number (NIPT) is required to import or export. Traders can request an 
authorization from the General Directorate of Customs to submit their customs declarations, or they 
can be represented by a licensed customs age nt, who must be established in Albania. Currently, 
about 173  economic operators are authorized to submit their own customs declaration.  
3.8.  The Customs Code foresees release for free circulation, as well as regimes for (i)  transit; 
(ii) storage (including for free zones); (iii)  special use (including temporary admission); and 
(iv) processing. A system is in place that authorizes traders to use simplified declarations and 
requires fewer documents or less data.11 Since December  2019, customs offices at border pos ts are 
open without interruption (24  hours a day, 7  days a week).  
3.9.  Goods in international or national transit can be covered by the national transit regime, a TIR 
carnet, an ATA carnet12, or be transported by post. The national transit regime is used for th e 
movement of goods between the border and the customs office where goods are cleared, as well as 
goods being placed under the storage regime, or those transported to free zones. Goods shipped by 
air are not subject to the transit regime even if they have been unloaded or reloaded at one airport. 
Except for transit transport by sea and air, pipeline, or by a public railway company, a guarantee is 
required. A common transit regime covering Albania and Kosovo13 has been in place since  2016.14 
3.10.  Goods imported u nder the storage regime can remain in customs warehouses or free zones 
for an indeterminate time. Goods in free zones are only subject to applicable customs duties when 
subsequently imported into the customs territory (Section  3.1.1) .15 
3.11.  The temporary admis sion of goods is usually limited to two  years but can be extended. A 
special end -use regime is also in place, allowing for such goods to be released for free circulation 
with reduced or removed duties.16 Goods imported under the inward processing regime (a ctive 
processing regime) are also eligible to be placed under the passive processing regime when 
temporarily exported to undergo further processing in another country. Goods exported for 
processing outside the customs territory (passive processing regime) can re -enter and be released 
for free circulation under the processing regime with partial or full exemption of import duties.17 
 
8 For example, where goods are destined for a location close to the border of entry, rather than the 
company's location, or where goods are perishable.  
9 Five of these operators are Approved Economic Operators (se e below).  
10 Order  No. 10795/2 of 14  May 2019 "On declaration of goods at Customs will be carried out online 
(paperless) by applying an electronic signature".  
11 Customs, Customs Simplifications . Viewed  at: https://www.dogana.gov.al/c/170/331/thjeshtime -
doganore . 
12 The ATA carnet is based on the Customs Convention on the ATA Carnet for the Temporary Admission 
of Goods.  
13 References to Kosovo shall be understood to be in the context of Security Council 
resolution  1244 (1999).  
14 Customs, Transit  Regime . Viewed  at: https://www.dogana.gov.al/c/181/294/regji mi-i-transitit . 
15 Customs Code, Articles  220-21. 
16 Customs Code, Article  227. 
17 Customs Code, Articles  228-235. WT/TPR/S /449 • Albania  
 
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  3.12.  The Customs Code does not contain provisions for the pre -release of goods, expedited 
clearance, or clearance for perishable goo ds. As a response to the COVID -19 pandemic, however, 
the authorities allowed for certain food items (such as flour, sugar, oil, pasta, bread, cake, biscuits, 
rice, cheese, butter, yoghurt, salt, water, milk, or eggs) to be cleared directly at the border, rather 
than an inland border off ice responsible for their business location. While this measure expired, a 
green lane concept is being introduced on intra -CEFTA border crossings for all goods requiring 
phytosanitary, veterinary, or food inspections, with advance information shared via th e 
SEED  system.  
3.13.  Goods arriving in Albania in small parcels sent by mail for personal use and valued at less 
than EUR  45, as well as online purchases arriving by parcel and value at not more than EUR  22, 
enter duty free (Section  2.5). According to Instructio n No.  2 of 15  January  2018, Customs also 
applies a simplified procedure to other small shipments of a non -commercial nature of up to 
EUR 1,000.18 
3.14.  Economic operators can apply for a binding decision regarding advance tariff classification.  
3.15.  The new Customs Code contains an AEO scheme that has been operational since  2019 and is 
aligned with international good practices. Operators can be approved either for safety and security 
to facilitate control (AEO -S)19 or for customs simplifications (AEO -C).20 Being approved under both 
would transfer "full" AEO  status. Notice  No. 6 of 19  October  2020 defines its practical 
implementation in greater detail.21 The first 8  AEOs were registered in  202122 and at the end of 
June 2023, 10  AEO-Ss and 11  AEO-Cs were registe red, 10  of them as full AEOs. Albania has signed 
an agreement with CEFTA countries, both parties are sharing information regarding approved AEOs, 
and the process of establishing mutual recognition of AEOs with CEFTA is under way. According to 
the authoriti es, a CEFTA evaluation team has given a positive opinion on the Albanian AEO scheme 
meeting the requirements in June  2022.23 In the interim, Albania also signed bilateral agreements 
regarding the mutual recognition of AEO -Ss with Serbia and North  Macedonia  in 2021, which entered 
into force in  2022.  
3.16.  Efforts to create a national single window system are ongoing with support from the 
World  Bank24, and a blueprint for the system is being prepared. Since  2020, 34  types of approvals, 
permits, and licences have be en issued by Customs through the e -Albania portal25, with an additional 
7 added by  2023. Other regulatory agencies also issue similar permissive documents required for 
import and/or export through the e -Albania portal, which can be transferred to the custo ms 
clearance system via user -upload.  
3.17.  In 2021, the time for import customs clearance for all risk categories was lower than in  2018 
and remained generally shorter at inland terminals compared to border crossing points.26 On 
average, the time to clear shipme nts classified as "yellow" (red) took 68  (72) minutes at border 
crossing points, and 23  (62) minutes in inland terminals. While the time to clear goods under the 
"green" or "blue" channel was generally less than 30  minutes in  2021, the release order was no t 
automatically issued but required an intervention by a customs officer.27 According to the Time 
Release Study, the National Food Authority contributes little to average clearance times.  
3.18.  On 10  May 2016, Albania ratified the Protocol concerning the WTO  Agreement on Trade 
Facilitation (TFA). According to the TFA  Database, more than 98% of Albania's commitments had 
 
18 Customs, Online Shopping and Postal Consignment . Viewed  at: 
https://www.dogana.gov.al/english/c/226/online -shopping . 
19 This includes fewer, and prioritized, physical and document -based controls, carried out at alternative 
locations following a request by the  operator.  
20 This includes reduced or waived guarantees, or the authorization for simplified declarations.  
21 Customs, Approved Economic Operators . Viewed  at: 
https://dogana .gov.al/english/c/170/284/authorized -economic -operators . 
22 European Commission (2022), Albania  2022 Report , SWD  (2022) 332  final, p. 101. 
23 Additional protocol No.  5 of CEFTA in force since 2018 provides for mutual recognition of CEFTA party 
AEO schemes, provided legislation and implementation are fully in line with the relevant EU  acquis.  
24 WTO document  G/TFA/N/ALB/3, 28  April 2023.  
25 Based on Order  No. 31/2021. Customs, Online Services Notice . Viewed  at: 
https://dogana.gov.al/d/172/172/0/872/njoftim -mbi-sherbimet -online . 
26 Albanian Customs; and IFC (2021), Time Release Study: Albania, December  2021, p. 16. Viewed  at: 
https://www.dogana.gov.al/dokument/4002/trs -albania -report . 
27 Albanian Customs; and IFC  (2021), Time Release Study: Albania, December  2021. WT/TPR/S/ 449 • Albania  
 
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  been implemented at the beginning of 2023, mostly under categories  A and  B, with the remaining 
commitments under category  C for implementation by the end of  2024. While it did not yet notify 
contact points for coordinating technical assistance, Albania notified other contact points in  2018 
and information regarding arrangements as well as progress regarding in the provision of technical 
assistance s upport in April  2023.28 During the review period, available trade facilitation indicators 
pointed to improvements in trade facilitation, in particular regarding appeals, fees and charges, 
documents, procedures, and involving the trade community. Despite si gnificant progress made as 
measured by various indicators, however, Albania continues to lag in most dimensions behind peers 
in Europe and Central Asia, or the OECD high -income economies ( Table  3.1). 
Table  3.1 Trade facilitation indicators  
 Albania  
2017  Albania  
2019  Albania  
2022  Europe and  
Central  Asia 
2022  OECD  
high income  
2022  
OECD Trade Facilitation Indicators (0 -2 (best))  
Average trade facilitation 
performance  1.153  1.371  1.426  .. .. 
A-Information availability  1.330  1.330  1.429  1.617  1.850  
B-Involvement of the trade 
community  1.250  1.570  1.571  1.645  1.810  
C-Advance rulings  1.571  1.571  1.571  1.683  1.806  
D-Appeal procedures  1.220  1.670  1.667  1.491  1.570  
E-Fees and charges  1.310  1.850  1.846  1.702  1.850  
F-Documents  1.000  1.440  1.556  1.634  1.800  
G-Automation  0.850  1.090  1.182  1.517  1.850  
H-Procedures  1.250  1.500  1.423  1.549  1.710  
I-Internal border agency 
co-operation  0.550  0.700  1.000  1.299  1.620  
J-External border agency 
co-operation  0.730  0.730  0.818  1.258  1.600  
K-Governance and impartiality  1.630  1.630  1.625  1.677  1.930  
 Albania  
2016  Albania  
2018  Albania  
2023  Europe and 
Central Asia 
2023  OECD  
high income 
2023  
Logistics Performance Index (1 -5 (best))  
Efficiency of customs and border 
management clearance  2.230  2.350  2.400  2.900  3.560  
.. Not available.  
Source:  OECD, Trade Facilitation Indicators  2022. Viewed  at: https://www.oecd.org/trade/topics/trade -
facilitation/ ; and World Bank, Logistics Performance Index (LPI).  Viewed  at: 
https://lpi.worldbank.org/ . 
3.19.  The Customs Code allows appealing the decisions of customs authorities first directly with the 
customs office, to the Director -General of Customs, and subsequently in court if needed. Betwe en 
2015 and 2022, operators filed on average more than 400  appeals with the Director -General of 
Customs, and most of them were brought to court subsequently.  
Customs valuation  
3.20.  Albania continues to primarily use transactional values for import customs declaration 
processes, accounting for 93% of customs declarations during 2022, compared to 91% in  2017. The 
remaining declarations used alternative valuation methods as spelled out in the Customs Code.29 
Since  2018, a national valuation database ca n be used to assess risks related to declared values.30 
No binding advance customs valuation system is in place.  
3.1.2   Rules of origin  
3.21.  Albania applies non -preferential rules of origin, conferring origin to wholly obtained products 
or where the last substantial (and economically justified) transformation has taken place, with 
 
28 WTO,  Trade Facilitation Agreement Database ; and WTO  document  G/TFA/N/ALB/3, 28  April 2023.  
29 Customs Code, Article  70. 
30 Guideline  No. 3/2018 on the Valuation of Goods for Customs Purposes. Viewed  at: 
https://www.dogana.gov.al/dokument/3341/udhezim -nr3-date-2312018 . WT/TPR/S /449 • Albania  
 
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  product -specific rules in place for a large number of products across many HS  chapte rs, defined in 
an annex to the Customs Code.31 Origin can be self -declared, unless origin affects certain conditions 
of entry, in which case a certificate of origin issued in the exporting country is required, using a 
template defined in the Customs Code.  
3.22.  Albania also provides for preferential rules of origin under its FTAs and these have changed. 
Since  2021, the Albania -EU Stabilisation and Association Agreement  (SAA) uses the current or 
transitory rules of origin contained in the Pan -Euro-Mediterranean (P EM) Convention on Rules of 
Origin until the revised PEM Convention is adopted by all contracting parties. Since  2022, they apply 
to the FTA with EFTA, since February  2023 to the FTA with CEFTA, and their use is also foreseen in 
the newly concluded FTA with  the United  Kingdom. Since 2021, the FTA with Türkiye uses the current 
PEM rules of origin. The Customs Code and implementing regulation foresee that preferential origin 
can be confirmed by a "suppliers declaration", per shipment or in the form of a long -term declaration 
covering up to two  years, using a form contained in an annex to the Customs Code. In  2022, the 
authorities issued a new guidance on "Non -Preferential Rules of Origin".32 
3.23.  Operators can apply for a binding decision on origin in case of doubt in line with a manual 
published in  2018.33 
3.1.3   Tariffs  
3.24.  All tariff lines in Albania's tariff schedule are bound, using the HS17  nomenclature, with the 
highest bound rate at 20%. The average bound rate is 6.3%, with that for agricultural 
tariff lines 10%, and th at for non -agricultural tariff lines  5.7%.  
3.25.  Applied tariff rates changed little between 2015 and 2023. Tariff rates decreased for 
162 tariff lines34, they increased for 10  tariff lines, and no comparison could be made for an 
additional 134  tariff lines. App lied tariff rates are on average 4.1%, significantly lower than the 
average bound rate ( Table  3.2). The nomenclature used for tariffs in  2023 is HS22, consisting of 
9,771  tariff lines at the 11 -digit level. This is a change from the  9,386  tariff lines at t he 8-digit level 
using HS12 at the time of the previous Review.  
Table  3.2 Structure of MFN tariffs in Albania,  2015 and 2023  
(% unless otherwise indicated)  
 Applied MFN  Final  
2015  2023  bounda 
Bound tariff lines (% of all tariff lines)  n.a. n.a. 100.0  
Simple average rate  4.2 4.1 6.3 
WTO agricultural products  8.7 8.7 10.0 
WTO non -agricultural products  3.0 2.8 5.7 
Agriculture, hunting, forestry and fishing (ISIC  1) 5.0 5.0 7.2 
Mining and quarrying (ISIC  2) 2.5 2.5 5.5 
Manufacturing (ISIC  3) 4.2 4.0 6.3 
Duty free tariff lines (% of all tariff lines)  48.6 50.8 34.7 
Tariff quotas (% of all tariff lines)  0.0 0.0 0.0 
Non-ad valorem  tariffs (% of all tariff lines)  0.0 0.0 0.0 
Domestic tariff "peaks" (% of all tariff lines)b 11.8 11.9 10.6 
International tariff "peaks" (% of all tariff lines)c 0.0 0.0 13.9 
Coefficient of variation  1.3 1.3 1.0 
Nuisance applied rates (% of all tariff lines)d 17.6 16.8 0.0 
n.a. Not applicable.  
 
31 Customs Code, Article  60, and CMD  No. 651. See also Customs, Non-Preferential Origin . Viewed  at: 
https://dogana.gov.al/english/d/182/249/0/229/non -preferential -origin . 
32 Director -General of Customs Order  No. 7, 18 March  2022, Guidance on "Non -Preferential Rules of 
Origin" . Viewed  at: https://www.dogana.gov.al/dokument/3911/manual -udhezues -mbi-rregullat -e-origjines -jo-
preferenciale .  
33 Customs, Binding Origin Information . Viewed  at: 
https://dogana.gov.al/d/182/249/0/402/informacion -detyrues -i-origjines . 
34 These cover primarily ITA products following acceptance of the ITA expansion, as well as some 
additional tariff lines.  WT/TPR/S/ 449 • Albania  
 
- 34 - 
 
  a Calculations for final bound rates are taken from the CTS database. The final bound schedule is 
based on HS17  nomenclature and consists of 6,692  tariff lines.  
b Domestic tariff peaks are defined as those exceeding three times the overall simple average applied 
rate. 
c International tariff peaks are defined as those exceeding  15%.  
d Nuisance rates are those greater than zero, but less than or equal to  2%. 
Note:  The 2015 tariff schedule is based on HS1 2 nomenclature consisting of 9,386  tariff lines at the 
8-digit level. The 2023 tariff schedule is based on HS22 nomenclature consisting of 9,771  tariff lines 
at the 11 -digit level.  
Source:  WTO Secretariat calculations, based on data provided by the authori ties and WTO CTS database.  
3.26.  The simple average of agricultural tariff lines (WTO  definition) was 8.7% in  2023, compared 
to a lower average of non -agricultural tariff lines of 2.8%. The tariff schedule consists of six rates 
ranging from zero to 15%35, 50.8% of tariff lines are duty free, and 16.8% of tariff lines have a 
nuisance tariff of 2%. Albania applies no non-ad valorem  tariffs and no MFN tariff rate quotas (TRQs). 
Average tariffs for raw materials are 3.9%, for semi -processed goods 1.8%, and for fully processed 
goods 5.3%; they vary significantly by HS  section  (Chart  3.1). 
Chart  3.1 Simple MFN average applied tariff by HS  section,  2023  
 
Note:  Calculations for averages are based on the national tariff line level (11 -digit). Tariff schedule is 
based on HS22.  
Source:  WTO Secretariat calculations, based on data provided by the authorities.  
3.27.  Albania's FTAs contain substantial improvements compared to MFN tariffs, with the large 
majority of imports entering d uty free, albeit with differences across agreements. Under CEFTA, 
100% of tariff lines are duty free, while only 81.4% of tariff lines are duty free under the 
Albania -Türkiye FTA. Generally, tariff concessions are higher for agricultural compared to 
non-agricultural products, and nearly all non -agricultural imports enter duty -free under these FTAs, 
while the share of duty -free tariff lines is more limited for agricultural products ( Table  3.3). Albania 
applies some preferential TRQs, affecting certain agricu ltural goods ( Section  4.1). 
 
35 The six rates are zero, 2%, 5%, 6%, 10%, and 15%.  
0%2%4%6%8%10%12%14%16%
01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21
Source: WTO Secretariat calculations, based on data provided by the authorities.01   Live animals & products        
02   Vegetable products
03   Fats & oils      
04   Prepared food, etc.
05   Mineral products
06   Chemicals & products07   Plastic & rubber
08   Hides & skins
09   Wood & articles
10   Pulp, paper, etc.
11   Textiles & articles
12   Footwear, headgear13   Articles of stones
14   Precious stones, etc.
15   Base metals and products
16   Machinery
17   Transport equipment
18   Precision instruments19   Arms & ammunition
20   Miscellaneous manuf.
21   Works of art, etc.Average applied rate (4.1%)
Note:            Calculations for averages are based on the national tariff line level (11 -digit). Tariff schedule is based on H S2022.Chart 3.1 Simple MFN applied tariff averages by HS section, 2023WT/TPR/S /449 • Albania  
 
- 35 - 
 
  Table  3.3 Albania's preferential tariff summary,  2023  
 
Simple tariff average  
(%) Share of duty -free lines  
(%) 
Overall  WTO  
agriculture  WTO  
non-agriculture  Overall  WTO  
agriculture  WTO  
non-agriculture  
MFN 4.1 8.7 2.8 50.8 11.5 61.8 
CEFTA  0.0 0.0 0.0 100.0  100.0  100.0  
EFTA 0.9 4.0 0.0 92.8 67.4 100.0  
EU/UK  0.9 3.9 0.0 92.9 67.6 100.0  
Türkiye  1.9 8.4 0.0 81.4 15.6 99.9 
Source:  WTO Secretariat calculations, based on data provided by the authorities.  
3.28.  For 24  tariff lines, applied rates exceed bound rates ( Table  3.4). The previous Review found 
that for 14  tariff lines, applied tariff rates exceeded bound rates, and for 13 of these lines, applied 
rates remain higher than bound rates after three lines have been merged into one.  
Table  3.4 Tariff lines with applied MFN rates higher than their bound levels,  2023  
No. Tariff code  
(based on the 2023 t ariff schedule)  2023 
applied 
duty rate 
(%) Bound 
duty rate 
(%) 
HS 0102 Live bovine animals  
1 01023910000  10 5/10a 
2 01029091000  10 5/10b 
HS 2404 Products containing tobacco, reconstituted tobacco, nicotine, or tobacco or nicotine 
substitutes  
3 24049190000  15 5 
HS 2707 Oils and other products of the distillation of high temperature coal tar  
4 27073000000  15 10/20c 
HS 2710 Petroleum oils and oils obtained from bituminous minerals , other than crude  
5 27109100000  10 5/10d 
6 27109900000  10 5/10e 
HS 2845 Isotopes  
7 28452000000  2 0 
8 28453000000  2 0 
9 28454000000  2 0 
HS 3006 Pharmaceutical goods  
10 30061030000  6 0 
HS 3706 Cinematographic film, exposed and developed  
11 37061020000  2 0 
12 37061099000  2 0 
HS 3825 Residual products of the chemical or allied industries  
13 38259010000  2 0 
HS 3911 Petroleum resins, coumarone -indene resins, polyterpenes, polysulphides, 
polysulphones  
14 39112000000  2 0 
HS 8415 Air conditioning machines, comprising a motor -driven fan and elements for 
changing the temperature and humidity  
15 84151090000  10 0/10f 
HS 8528 Monitors and projectors, not incorporating television reception apparatus  
16 85285291000  2 10 
17 85285900000  2 0/10g 
18 85287115000  6 0 
19 85287119000  6 0 
20 85287191000  6 0 
21 85287199000  6 0 
HS 8539 Electric filament or discharge lamps  
22 85393920000  2 0 
HS 9013 Lasers, other than laser diodes  
23 90138000000  2 0/5h 
HS 9017 Drawing, marking -out or mathematical calculating instruments  
24 90172039000  2 0/5i 
a A tariff is bound at 5% on domestic species of buffalo with a weight exceeding 80  kg but not 
exceeding 160  kg (excluding for slaughter). The applied tariff on this product is higher than the 
corresponding bound level.  WT/TPR/S/ 449 • Albania  
 
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  b A tariff is bound at 5% on domestic s pecies of live bovine animals (other than cattle and buffalo) 
with a weight exceeding 80  kg but not exceeding 160  kg (excluding for slaughter). The applied tariff 
on this product is higher than the corresponding bound level.  
c A tariff is bound at 10% on X ylol used for purposes other than as a power or heating fuel. The 
applied tariff on this product is higher than the corresponding bound level.  
d A tariff is bound at 5% on waste oils of electrical insulating oils (containing polychlorinated 
biphenyls  (PCBs ), polychlorinated terphenyls (PCTs), or polybrominated biphenyls (PBBs)). The 
applied tariff on this product is higher than the corresponding bound level.  
e A tariff is bound at 5% on waste oils of electrical insulating oils (other than containing PCBs, P CTs, 
or PBBs). The applied tariff on this product is higher than the corresponding bound level.  
f A tariff is bound at zero on a tariff code for use in civil aircraft. The applied tariff on this product is 
higher than the corresponding bound level.  
g A tariff is bound at zero on colour monitors. The applied tariff on this product is higher than the 
corresponding bound level.  
h A tariff is bound at zero on ITA products. The applied tariff on this product is higher than the 
corresponding bound level.  
i A tariff is bound at zero on marking -out instruments for pattern generating apparatus of a kind used 
for producing masks or reticles from photoresist coated substrates. The applied tariff on this product 
is higher than the corresponding bound level.  
Source:  WTO Secretariat calculations, based on data provided by the authorities and WTO  CTS database.  
3.1.4   Other charges affecting imports  
3.1.4.1   Other duties and charges  
3.29.  Albania has bound other duties and charges within the meaning of Article  II:1(b) of the 
GATT  1994 at zero.36 Albania imposes certain fees and charges for services rendered, however. 
Among those, customs levies "scanning fees" of EUR  22 for each customs declaration valued above 
EUR 1,000, and a fee of EUR  5 for those valued below, regardless of whether the consig nments are 
actually scanned. Scanning has been undertaken since  2015 under a Concession Agreement. Other 
fees include parking fees (lowered in  2019 and free for the first 60  minutes), a sealing fee, and 
storage fees for the use of customs warehouses.37 A fee for the printing of certain customs forms 
was removed in  2019.  
3.1.4.2   Internal taxes collected at the border  
3.30.  Internal taxes such as VAT or excise duties are collected at the border for imports, at the 
same rates as those for domestically produced goods, which are collected internally. The standard 
VAT rate of  20% is charged on most goods with certain goods and services subject to a reduced rate 
of 6%38, while exports are zero -rated (Section  3.3.1) . Where levied on imports, VAT is based on the 
transaction value including import duties. Excise duties apply to a broad range of products such as 
coffee, alcoholic beverages, tobacco, energy products, tyres, and accumulators, with some changes 
during the review period. Customs authorities also collect excise duty on na tionally produced goods 
and such excise duties accounted on average for 3.9% of total excise duties collected between 2019 
and 2022.  
3.31.  In addition to VAT and excise duties, Customs also collects additional national taxes for goods 
that are imported. They are  (i) a "packaging tax", paid for plastic and glass packaging39; 
(ii) a turnover tax for fuels used by fishing vessels; and (iii)  a carbon tax of ALL  3 per kg for coal, 
kerosene, solar, mazut, and petroleum coke, ALL  3 per litre of gasoline, and ALL  1.5 per litre of 
petrol.40 There are also taxes on the import of milk powder, milk whey, and milk cream (also applying 
to production); on the import of homogenized beverages (also applying to production); and for fuel 
used for vessels for tourism and entertainmen t purposes going outside Albanian territorial waters.  
 
36 WTO document  WT/ACC/ALB/51, 13  July 2000.  
37 Actual fees and charges applied by the Customs Administration are based on the 2019 Instruction of 
Minister of Finance and Economy, No.  10693/2. Viewed  at: https://dogana.gov.al/dokument/2991/f z-2019-
141. 
38 Law No. 92/2014, Article  49. 
39 While the tax on domestically produced glass packaging is collected internally, Customs collects a tax 
on raw materials used in the production of plastics packaging when such m aterials are imported.  
40 Customs, Other Taxes . Viewed  at: https://dogana.gov.al/english/d/169/182/248/235/other -taxes . WT/TPR/S /449 • Albania  
 
- 37 - 
 
  3.32.  Overall, taxes collected by Customs at the border accounted for more than 50% of total tax 
revenue in each year during the review period, increasing as a share of the total during the review 
period. Imp ort duties accounted for slightly more than 2% of total tax revenues ( Table  3.5). 
Table  3.5 Tax revenue by source, 2015 -22 
(ALL billion)  
Collector  Tax 2015  2016  2017  2018  2019  2020  2021  2022  
Customs 
administration  Customs tariff  5.8 6.1 6.5 6.2 6.5 6.2 7.5 8.4 
VAT 95.3 97.6 104.6  107.2  107.2  100.9  131.3  156.9  
Excisea 39.0 41.9 45.1 45.0 46.7 44.5 51.6 53.5 
Other  3.9 2.8 2.3 2.6 2.6 1.8 2.4 4.2 
Subtotal  144.0  148.0  159.0  161.0  163.0  153.0  193.0  223.0  
Tax 
administration  Income tax  29.6 31.4 32.1 36.4 46.1 33.7 39.3 45 
Property tax  25.0 29.2 31.6 34.5 36.6 28.4 35.6 47.7 
VAT 30.4 33.8 35.0 36.3 25.3 29.5 30.2 34.5 
Excise  a a a a a a a a 
Other national tax  29.9 33.0 36.2 36.0 33.8 34.0 40.1 40.6 
Subtotal  115.0  127.0  135.0  143.0  142.0  126.0  145.0  167.8  
Total tax revenue  258.9  275.8  293.4  304.3  304.8  279.0  338.1  390.8  
a Customs authorities also collect excise duty on nationally produced goods, and such duties are 
included under "customs administration".  
Source:  Ministry of Finance and Economy.  
3.1.5   Import prohibitions, restrictions, and licensing  
3.33.  Albania first notified WTO Members of quantitative restrictions in place in December  2018.41 
According to the notification, the importation and transit of hazardous waste (defined as chemicals 
classified as Persistent Organic Pollutants and subject to the Stockholm and Basel Conventions) are 
strictly prohibited under all circumstances, while the import of certain animals and plant species (all 
CITES species), as well as certain narcotic drugs, is restricted.  
3.34.  The latest responses to the import licensing questionnaire indicate that licensing requirements 
are in place for a number of products requiring a licence, perm it, or authorization to be imported 
into Albania ( Table  3.6). Licensing is generally done on a compliance basis, which might include the 
registration of products, such as plant protection products, and according to the authorities does not 
intend to restri ct quantities. In most cases, economic operators are licensed to import such goods 
without each individual shipment requiring a licence. However, for drug precursors, the Ministry of 
Health and Social Protection issues a special authorization for each impo rt consignment of category  1 
and 2  substances, while those of category  3 are subject to an annual licence and quantity limits.  
Table  3.6 Imports requiring licensing  
Goods categories/items  Legal basis  Controlling authority  
Certain animals and plant 
species  (CITES)  Law No.  9867/2008 on Determining the Rules 
and Procedures for the International Trade of 
Endangered Species of Wild Fauna and Flora, as 
amended  Ministry of Tourism and 
Environment  
Plant protection products  Law No. 10081/2009 on Licensing, 
Authorizations and Permits in the Republic of 
Albania, as amended Law  No. 105/2016 for the 
protection of plants, amended by 
Law No. 15/2022  National Food Authority  
Live animals, material on 
animal insem ination, 
veterinary drugs and 
vaccines  Law No. 10081/2009 on Licensing, 
Authorizations and Permits in the Republic of 
Albania  National Business Centre 
(NBC), Ministry of Agriculture 
and Rural Development, and 
National Authority for 
Veterinary and Plant Pro tection  
 
41 WTO document  G/MA/QR/N/AL B/1, 4  December  2018. Previously, Albania had notified that it did not 
have quantitative restrictions in place.  WT/TPR/S/ 449 • Albania  
 
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  Goods categories/items  Legal basis  Controlling authority  
Mercury  Law of Chemicals No.  27/2016, based on 
Minamata Convention  Ministry of Tourism and 
Environment  
Ozone -depleting 
substances  Council of Ministers Decision  No. 10/2019 on 
Rules for the Production, Import, Export, 
placing on the Market and Use of 
Ozone -Depleting Substances, as well as the 
Products and Equipment that Contain these 
Substances  Directorate of Climate Change, 
Ministry of Tourism and 
Environment  
Military and dual use goods  Law No. 46/2018 on State, International 
Transfer Control of Military Goods and Dual -use 
Items and Technologies, replacing 
Law No. 9707/2007  State Export Control Authority  
Drug precursors  Law No. 8874/2002 for the Control of 
Substances Used to Produce Illicit Narcotic and 
Psychotropic Substances  Ministry  of Health and Social 
Protection  
X-ray equipment  Law No. 8025/1995 on Protection from Ionizing 
Radiation, as amended  Radiation Protection 
Commission (Radiation 
Protection Office)  
Light weapons and 
ammunition  Law No. 74/2014 on Arms  State Police  
Source:  WTO document  G/LIC/N/3/ALB/12, 8  March  2023; and information provided by the authorities.  
3.1.6   Anti-dumping, countervailing, and safeguard measures  
3.35.  During the review period, Albania did not amend its rules on anti -dumping and countervailing 
measures des cribed in the previous Review.42 Law No. 9796/2007 on anti -dumping and 
countervailing measures and Law  No. 9790/2007 on safeguard measures remain in place and were 
not amended.  
3.36.  Companies representing at least 50% of a sector can request the initiation of a nti-dumping 
or subsidy investigations, which are then led by the Ministry of Finance and Economy43, with any 
decision to impose measures taken by the Commission for the Evaluation of Measures of Imports.44 
Such measures must be reviewed at least every five  years but can remain in place following such 
reviews. Procedures regarding safeguard measures follow a similar mechanism as described in the 
previous Review. Temporary safeguard measures in the form of a tariff increase not 
exceeding  200 days can be appli ed under certain conditions. Final safeguard measures can also 
include quantitative restrictions and can be imposed for a maximum of eight  years, with such 
measures being removed gradually starting from one year of application. While some requests were 
raised, Albania did not start any formal anti -dumping or subsidy investigations and did not decide 
to impose any measures. Albania has not maintained any anti -dumping, countervailing, or safeguard 
measures since its accession to the WTO.  
3.37.  Albania's FTAs provid e for the recourse to anti -dumping and countervailing measures in 
accordance with respective WTO provisions. The agreements also cover safeguards, allowing for the 
use of bilateral safeguards, under broader conditions but with additional limits, under thes e 
agreements as outlined in the previous Review.  
3.1.7   Other measures affecting imports  
3.38.  Special customs regimes play an important role in Albania, with around 20% of imports being 
imported under the inward processing regime (Sections  1.7.1 and 3.1.1). 
3.39.  The Albani an Investment Development Agency (AIDA) also implements a promotional "Made 
in Albania" campaign (Section  3.3.1)  that could potentially impact imports.  
 
42 WTO document  WT/TPR/S/337/Rev.1, 1  August  2016, p.  46. 
43 This Ministry was established in  2017 as a result of a merger of the Ministry of Econ omic 
Development, Tourism, Trade and Entrepreneurship  (MEDTTE) and the Ministry of Finance ( Section  2.2). 
44 The Commission for the Evaluation of Measures for Imports was recomposed in  2017 and is chaired 
by the Minister responsible for trade issues. See Co uncil of Ministers Decision  No. 317/2017. Viewed  at: 
http://qbz.gov.al/eli/vendim/2017/04/12/317 . WT/TPR/S /449 • Albania  
 
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  3.2  Measures directly affecting exports  
3.2.1   Customs procedures and requirements  
3.40.  The Customs Code regulates custo ms procedures and requirements for exports, with general 
registration and documentation requirements similar to those for imports. Exporters submit an 
export declaration, with consignments cleared at the office in the region where the exporter is legally 
registered and the relevant exit office certifying the exit of goods. Exporters can also clear 
consignments at the border directly.45 While a pre -departure declaration is foreseen according to 
the Customs Code, the relevant elements of the IT system are sti ll being developed.  
3.2.2   Taxes, charges, and levies  
3.41.  No export duties are applicable to exports, and exports are VAT zero -rated. Irrespective of 
whether they are exported or not, certain products are subject to a mining fee ( Section  4.2).46 
3.2.3   Export prohibitions, restrictions, and licensing  
3.42.  During the COVID -19 pandemic, the authorities introduced a number of temporary export 
restrictions relating to certain drugs, medical supplies, and medical devices in March  2020, which 
were again lifted in July  2021.47 
3.43.  Export licences for military goods remain in place and are administered by the State Export 
Control Authority in accordance with Law  No. 46/2018.  
3.2.4   Export support and promotion  
3.44.  Special customs regimes play an important role in Albania, with more than 50 % of exports 
being classified as re -exports under the duty drawback export regime in recent years 
(Section  1.7.1) . 
3.45.  The AIDA provides support to companies in Albania interested in exporting, focusing on SMEs. 
In 2017, AIDA published an Export Guide .48 It supports the participation of some companies in trade 
fairs, manages a business -to-business platform for peer exchanges, and provides additional support 
to SMEs, including via a number of general support funds (Section  3.1.1). AIDA also implements the 
promot ional "Made in Albania" campaign that could potentially impact exports although no data was 
available (Section  3.3.1) . 
3.46.  According to the authorities, an Export Programme  2023-27 is being developed, which would 
aim to bolster export capabilities of certain s ectors through measures spelled out in an action plan 
to promote exports and international integration. The programme is expected to be approved during 
2023.  
3.2.5   Export finance, insurance, and guarantees  
3.47.  According to the authorities, no official export insuran ce, finance, or guarantee scheme for 
exports is in place.  
3.3  Measures affecting production and trade  
3.3.1   Incentives  
3.48.  Over the review period, there were no major changes to the tax framework other than some 
temporary measures in response to the COVID -19 pandemic as  well as the introduction of some 
 
45 Customs Code, Article  243. 
46 Customs, Other Taxes . Viewed  at: https://dogana.gov.al/english/d/169/182/248/235/other -taxes . 
47 WTO documents  G/MA/QR/N/ALB/1/Add.1, 27  March  2020; and G/MA/QR/N/ALB/1/Add.2, 
9 November  2021.  
48 AIDA and GIZ (2017), Export Guide for SMEs . Viewed  at: 
https://www.aida.gov.al/images /PDF/Guida -e-eksporteve.pdf . WT/TPR/S/ 449 • Albania  
 
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  select tax incentives, some adjustments to the implementation of VAT, and some changes to excise 
duties.  
3.49.  Law No. 8328/1998 on Income Tax was amended multiple times during the review period. 
The corporate income tax  (CIT) i s 15% for companies with annual income exceeding ALL  14 million, 
while companies of lower annual income are subject to a reduced CIT of 5% since  2018 and zero 
since January  2021. For businesses, a reduced CIT of 5% applied to business entities operating in  
software development between January  2018 and May  2023. This reduced rate of 5% also applies 
to businesses in the areas of agricultural cooperation and agritourism since January  2019, and for 
companies of at least 250  employees operating in the automotive  sector and generating all revenue 
from the production of motor vehicles or components since January  2020.49 A progressive personal 
income tax is generally levied at rates of zero, 13%, and 23%.  
3.50.  The VAT  Law (Law  No. 92/2014) sets a standard VAT rate of 20% for most goods with certain 
goods and services subject to a reduced rate, and a number of services exempt from VAT. 
Since  2017, the Law was amended multiple times, adding products subject to red uced rate of 
6% and, in  2021, introducing a reduced rate of 10% applying to certain agricultural inputs instead 
of the VAT exemption applying to such inputs until then ( Section  4.1). The 2021 reform also 
increased the minimum size of investments eligible t o benefit from VAT exemptions for the imports 
of machinery and equipment, from ALL  50 million to ALL  500 million, and removed such a general 
exemption for small businesses. A VAT scheme for small businesses is in place.  
3.51.  Excise duties apply to a broad range  of products such as coffee, alcoholic beverages, tobacco, 
energy products, tyres, and accumulators. While there were changes during the review period to the 
list of products subject to excise duty, it did not fundamentally change. Some tobacco and energy 
products were added, while used tyres and certain batteries and lamps were removed. However, 
some excise duty rates have changed. Excise duties for certain products are set to increase annually 
until 2026. An updated list of products subject to excise duty  is contained in Law  No. 61/2012.50 
Law No. 114/2021 introduced the indexation of excise duty to past inflation with the exception of 
tobacco and its by -products. Among other things, the IMF pointed to the potential benefits from 
increasing compliance rega rding excise duty payments for fuels.51 
3.52.  The Government also continues to provide direct incentives in line with its 
State  Aid Law No 9374/2005. The Law applies to all manufacturing and services activities but does 
not apply to agriculture and fisheries. As  outlined in the previous Review, the Law prohibits state aid 
to be linked to export quantities, expenditures, or the use of domestic rather than imported inputs. 
A State Aid Commission  (SAC) approves all state aid schemes and individual aid based on 
submi ssions from the Department of Business Development Policies in the Ministry of Finance and 
Economy. However, according to a recent EU  assessment, the operational independence of the SAC 
has not yet been ensured and its enforcement record needs to be signif icantly improved.52 
3.53.  State aid is primarily provided as grants and tax exemptions, and the total amount of state 
aid provided between 2016 and 2022 was estimated at ALL  65.0 billion. State aid in  2021 amounted 
to ALL  4.6 billion, or 0.25% of GDP, and that i n 2022 to ALL  6.1 billion, or 0.30 % of GDP, roughly 
evenly divided between horizontal and sectoral aid. According to the authorities, most state aid 
schemes are relatively small. The SAC approved new state aid schemes in  2020 to support "green" 
businesses  in Tirana, and in  2022 to support business start -ups throughout Albania, implemented 
by the State Minister of Entrepreneurship Protection. According to the authorities, 32% of the state 
aid in  2022 was in the form of grants, and 68% as tax expenditures. I n 2022, the largest share of 
state aid was directed to the tourism sector (ALL  2 billion), followed by public transport 
(ALL 501 million). State aid in  2020 had been significantly higher at 1.9%  of GDP as a response to 
the earthquake and the COVID -19 pande mic, which led to significantly higher "operational aid" (aid 
directed to variable costs). According to the latest notification by Albania, state aid in response to 
 
49 Council of Ministers Decision No.  141/2020 "For the definition of activities, criteria and procedures for 
legal entities that exercise economic activity in the automotive industry".  
50 Law No. 61/2012, last amended by Law No.  81/2022. Viewed  at: 
http://qbz.gov.al/eli/ligj/2012/05/24/61 . 
51 IMF Country Report No.  22/362 , p. 12. 
52 European Commission (2022 ), Albania  2022 Report , SWD  (2022) 332  final. WT/TPR/S /449 • Albania  
 
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  the COVID -19 pandemic between 2020 and July  2021 also included grants  and loans guarantees to 
support employees in relatively small enterprises53 (Section  1.2). 
3.54.  The AIDA also administered a number of support funds for SMES, at least for part of the 
review period. They included the Competitiveness Fund  (2014 -19), the Creative Economy  Fund 
(2014 -19), the Start Up Fund (2015 -19), and the Innovation Fund (in  2014, 2016, and 2019).54 
Total expenditure for these four funds amounted to ALL  168 million between 2016 -19.55 According 
to the authorities, there were no programmes in place in  2020 and 2021, while in  2022, a 
programme to provide grants to support the digital transformation of SMEs funding up to 80% of 
such costs but not exceeding ALL  2,500,000  per company was pu t in place. However, this 
programme did not disburse any funds, according to the authorities.56 From 2023, AIDA will be 
managing a single fund for MSMEs following the adoption of a new law57, with the Ministry of Finance 
and Economy annually proposing cond itions and criteria for the provision of support to be funded 
under it, and the scheme being jointly implemented by the Ministry and AIDA. The proposed schemes 
will be approved by the Council of Ministers. No study assessing the effectiveness of past schem es 
was available.  
3.55.  In addition, AIDA provides support to Albanian MSMEs and products via the "Made in Albania" 
campaign, launched in July  2020. By May  2023, 248  local products had been selected. They are 
presented on the AIDA website, promoted in social net works, and most of them have already been 
included in one of three published catalogues.58 
3.56.  As spelled  out in the previous Review, Albania continues to implement a scheme of Technology 
and Economic Development Areas (TEDAs) as defined in Law  No. 9789/2007, amended in  2015. 
There have been no further changes to the Law and related Council of Ministers Decisions during the 
review period59, but the BIDS 2021 -27 foresees a detailed review of the functioning of TEDAs. TEDAs 
aim to attract FDI by creating predicta ble investment conditions and are established by Council of 
Ministers Decisions. Four TEDAs have been established in Spitalle, Durrës (2015), Koplik, Malësi 
e Madhe (2016), Elbasan (2019), and Tirana (2021). The developer is still being selected for the 
TEDA in Spitalle and for Koplik, the Elbasan TEDA has been operational since  2022, and the TEDA in 
Tirana is under construction with an expected completion date of  2026. The Government envisages 
the establishment of additional zones.  
3.57.  TEDA developers can be p ublic (the Tirana TEDA will be managed by the municipality) or 
private entities (Elbasan, although with a minority share held by the Ministry of Finance  and 
Economy ). The Government can select developers based on a competitive procedure, a 
non-competitive procedure, or following an application by a private company for an area already 
under their ownership. Developers are responsible for securing the zone (including for customs 
purposes) and constructing and maintaining necessary infrastructure and offices ( including 
connecting them to national infrastructure). Land is leased to the developers nearly for free, who 
then rent out facilities to companies setting up in the zone, often at relatively low rates. Firms 
wanting to set up in the zones are encouraged to  operate in new and innovative industries, meet 
international pollution elimination standards, be energy efficient, and exhibit high productivity. 
Applications by firms for investments and establishment are approved by the Ministry of Finance and 
Economy b ased on a request by the developer and its agreement with the user. During the review 
period, the use of zones, and economic activity located therein, has started but remains overall 
limited ( Table  3.7). 
 
53 WTO document  G/SCM/N/372/ALB, 4  November  2021.  
54 AIDA, AIDA's Funds . Viewed  at: https://aida.gov.al/en/sme/financing -initiatives/aida -s-funds . 
55 WTO document  G/SCM/N/343/ALB, 23  November  2020. In addition, a SME fund for tourism in certain 
historical areas disbursed ALL  28.6 million in  2016.  
56 AIDA, AIDA's Funds .  
57 Law No. 43/2022.  
58 AIDA, Choose the Country . Viewed  at: https://www.aida.gov.al/sq/zgjidh -te-vendit . 
59 Council of Ministers Decisions  No. 106/2014,  No. 646/2015, and  No. 647/2015.  WT/TPR/S/ 449 • Albania  
 
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  Table  3.7 Development of TEDA activity, 2016 and 2022  
 
 2016  2022   
Size (ha)  
Total cumulative 
investment 
received  
(USD  million)  
Active firms 
(number)  
Employment  
Production 
(USD  million)  
Exports  
(USD  million)  
Total cumulative 
investment 
received  
(USD  million)  
Active firms 
(number)  
Employment  
Production 
(USD  million)  
Exports  
(USD  million)  
Spitalle, Durrës  49 0 0 0 0 0 0 0 0 0 0 
Koplik, 
Malësi  e Madhe  61 0 0 0 0 0 0 0 0 0 0 
Elbasan  24 n.a. n.a. n.a. n.a. n.a. 8 5 155 8 8 
Tirana  35 n.a. n.a. n.a. n.a. n.a. 20 0 0 0 0 
Total   0 0 0 0 0 28 5 155 8 8 
n.a. Not applicable.  
Source:  Information provided by the authorities.  
3.58.  Investments in TEDAs benefit from a number of fiscal and administrative incentives. They 
include, inter alia, (i) exemptions of imported inputs from import duties and VAT, and the delivery 
of Albanian goods into the zones (as well as provision of services in the zones) under zero -rated VAT; 
(ii) a profit tax holiday of 50% for five  years; (iii)  a tax deduction of 20% of their capital expenses 
(for investors setting up within the first three  years of a zone becoming operational); (iv)  exemption 
from the infr astructure impact tax; (v)  certain exemptions of real -estate related taxes; and 
(vi) additional tax deductions relating to salaries payments (and subsequent increases in the salary 
base), as well as expenses for certain trainings and R&D activities, at mor e than 100% for 10  years. 
The zone developer also assists companies in obtaining relevant operating licences and other permits 
from line Ministries. The Tirana TEDA benefits from a special strategic investment procedure as 
outlined in Law  No. 55/2015 on St rategic Investments, being granted specific support for the 
expropriation of land and the construction of various connecting infrastructure to the zone 
(Section  2.4).60 
3.59.  Sales of goods produced in TEDAs into the domestic market are subject to customs duties 
and VAT. The value of inputs of Albanian origin used in the production in TEDAs is deducted in this 
case. Where goods are sold domestically at prices below market value and which would negatively 
impact domestic industry, they would be subject to a "correction" fee.61 The movement of goods 
between TEDAs does not incur customs duties.  
3.3.2   Standards and other technical requirements  
3.60.  The framework relating to standards and technical regulations remains largely unchanged 
from the previous Review with the exception of a new Law on Metrology (Law No.  126/2020) adopted 
in 2020.  
3.61.  The General Directorate of Standardization (DPS), reporting to the Ministry of Finance and 
Economy, is the national standards body in charge of standardization activities and remains 
responsible for the development and adoption of standards. It also remains the notifying authority 
and enquiry point for the WTO. Following some amendments to the Law on Standardization  (Law 
No. 9870/2008) in  2020, it plays the same role under CEFTA, and is  also tasked with implementing 
obligations relating to EU  directives and regulations in the area of standardization. Council of 
Ministers Decision No.  382/2018 spelled out some elements of standardization activities in more 
detail, and was amended in  2021 to reflect requirements of EU  Regulation  1025/2012 on European 
Standardization, inter alia, regarding transparency and participation. DPS is a full member of the 
European Telecommunication Standards Institute  (ETSI), an affiliate member of the 
European  Committee for Standardisation  (CEN) and the European Committee for Electrotechnical 
 
60 Strategic Investments Commission Decision  No. 1/8 of 15  July 2021. Viewed  at: 
https://www.aida.gov.al/im ages/PDF/Vendimet -e-komitetit/VKIS%201 -8%20date%20TEDA%20Tirane.pdf . 
61 According to the authorities, such fee has not yet been applied.  WT/TPR/S /449 • Albania  
 
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  Standardisation  (CENELEC)62, and an associate member of the International Electrotechnical 
Commission  (IEC).  
3.62.  Standards are developed and approved by the DPS, with inputs from relevant stakeholders 
and from public consultations. Based on proposals by the technical committees at DPS, a Technical 
Board approves new standards to be developed in a work programme. Draft standards are published 
for comments, before being finalized by a relevant technical committee at DPS, composed of various 
stakeholders.63 
3.63.  Once adopted, Albanian Standards  are published  on the website of the DPS and in the National 
Standards Catalogue. Since  2016, around 13,000  European  Standards and 4,500  internationa l 
standards have been adopted as national standards. According to the authorities, of the nearly 
40,000  Albanian  Standards adopted, more than 90% are aligned with European Standards.  
3.64.  Technical regulations are adopted by Council of Ministers Decisions. They  are either based on 
EU Regulations or Directives and Harmonized Albanian Standards or other national standards. 
Harmonized Albanian Standards simply reflect an underlying Harmonized European Standard64 and 
are adopted by the DPS before a European technica l regulation is transposed into domestic law, with 
the list of Harmonized Albanian Standards (or changes to them) published in the Official Gazette. At 
the end of 2022,  29 technical regulations were in place in Albania, 16  of which were issued during 
the r eview period. All technical regulations are harmonized with the EU  technical regulations, 
according to the authorities, with most of them based on Albanian Harmonized Standards (using the 
system of presumption of conformity).  
3.65.  All goods subject to a technic al regulation need to demonstrate compliance before being 
marketed. For imports, such compliance must be demonstrated as part of their clearance. According 
to the Law on Marketing and Market Surveillance of Non -food Products, c onsignments require a 
declara tion of conformity from the manufacturer and the conformity marking affixed on the product 
in case products are subject to Albanian Harmonized Standards or European Harmonized Standards 
where the presumption of conformity applies. 65 For goods subject to a  technical regulation not based 
on a harmonized standard (such as detergents, textile, crystal glass, aerosol dispensers, or 
footwear), detailed requirements such as those regarding the labelling, display of information, or 
composition are specified in res pective legal acts . 
3.66.  Complementing the conformity system, a system for market surveillance remains in place, 
with Law  No. 10489/2011 spelling out the system for non -food products. In  2016, an Inspectorate 
for Market Surveillance, reporting to the Ministry o f Finance and Economy, was established. It is 
tasked, inter alia, with overseeing the market for non -food consumer products in terms of safety, 
consumer protection, copyrights and related rights ( Section  3.3.7), and energy labelling.66 According 
to a recen t assessment by the European  Commission, the Albanian legislation regarding market 
surveillance is partially aligned with the EU  acquis .67 
3.67.  The national accreditation body performing the accreditation of testing, calibration, and 
medical laboratories, as we ll as inspection and certification bodies remains the General Directorate 
of Accreditation (DPA) in line with Law  No. 116/2014 on Accreditation of Conformity Assessment 
Bodies in the Republic of Albania. According to the authorities, accreditation is under taken in 
accordance with European and international standards. At the end of 2022, there were 
102 accredited conformity assessment laboratories and bodies. DPA is member of the European 
co-operation for Accreditation (EA) and has signed the EA  MLA, accepti ng equivalence of 
accreditation systems and the reliability of conformity assessment results by accredited Conformity 
Assessment Bodies (CABs), in fields of testing (2015), inspection (2018), management system 
certification (2018), and persons certificatio n (2020). As a result, DPA recognizes the conformity 
 
62 DPS applied to become a full member of CEN/CENELEC in  2021.  
63 Committee members ar e approved by the Technical Board based on applications received. Members 
need to demonstrate certain experience and competency.  
64 Such European Harmonized Standards are developed based on a request by the 
European  Commission and, while voluntary, set out technical specifications that would be sufficient to comply 
with certain technical requirements outlined in EU  regulations.  
65 Law No. 10489/2011, Article  26. 
66 The Inspectorate was set up by Council of Ministers Decision No.  36/2016.  
67 European Commission (2022), Albania  2022 Report , SWD  (2022) 332  final. WT/TPR/S/ 449 • Albania  
 
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  assessment results issued by CABs accredited by peer -evaluated accreditation bodies under the 
EA MLA. 
3.68.  DPA is also full member of ILAC in the field of testing (2016) and inspection (2018) and is an 
accred itation body member of the IAF and signatory member of IAF MLA in the field of management 
system certification (2018) and persons certification (2022). In addition, DPA has signed MoUs with 
accreditation bodies in a number of neighbouring and European coun tries and signed a trilateral 
agreement covering the acceptance of conformity assessment results (similar to that covered by the 
EA MLA) with North  Macedonia and Serbia in  2021, related to CEFTA provisions. While the SAA 
foresees the conclusion of an Agree ment on Conformity Assessment and Acceptance of Industrial 
Products (ACAA) between Albania and the European  Union, negotiations had not yet started by the 
middle of 2023.  
3.69.  Replacing an earlier law from 2008, the new law on Metrology (Law  No. 126/2020) and its 
implementing regulation aim to strengthen the metrological system overall, and to improve 
consumer protection and public health. The General  Metrology  Directorate ( DPM) under the M inistry 
of Finance and Economy as national metrology body is a member of a number of international 
organizations in the field of metrology, including the European Association of National Metrology 
Institutes (EURAMET). Laboratories of National Measurement Standards at DPM operate according 
to a Quality Management System that complies with the requirements of 
standard  ISO/IEC  17025:2017 according to the authorities, based on a EURAMET peer review. 
Since  2019, DPM has registered the measurement an d calibration capabilities in the database of the 
International Bureau of Weights and Measures in the fields of mass, volume, and pressure according 
to the requirements of the International Committee for Weights and Measures MRA.68 
3.70.  Since  2018, food product s are labelled in line with Council of Ministers Decision  No. 434/2018 
on food labelling and consumer information, replacing an earlier 2008 Regulation. The Decision is 
partially aligned with requirements of the relevant EU  Regulation  1169/2011, aims to in crease 
consumer protection, and includes a requirement to present nutritional information and ingredients. 
According to the authorities, the decision also aims to increase consumer protection and product 
quality, and facilitate the movement of food product s. Law No. 105/2014 on Drugs and 
Pharmaceutical Services (which was amended in  2021 and early 2023) regulates the labelling of 
pharmaceutical products, while Law  No. 26/2017 regulates the labelling of cosmetics.  
3.71.  In 2016, Albania adopted a new law on organi c production, labelling, and control, replacing 
an earlier law from 2008.69 Imports can be marketed as organic if importers demonstrate that 
products have been produced with equivalent practices as spelled out in the law, with products 
certified as organic  by a EU  member  State control body (or one considered equivalent to them) 
automatically considered as equivalent in Albania (Article  37). According to the authorities, a new 
law on organic production is being drafted to reflect recent changes in EU  legisla tion, and is expected 
to be adopted in  2024.  
3.72.  During the review period, Albania filed 19  TBT notifications to the WTO, mostly under 
Article  2.9. 
3.3.3   Sanitary and phytosanitary requirements  
3.73.  The regulatory SPS framework was updated in parts during the review peri od. 
Law No. 9863/2008 on Food continues to regulate general food safety, Law  No. 10465/2011 
continues to apply to veterinary services with some amendments, while a new Law on Plant 
Protection was adopted in  2016 and amended in  2022.70 
3.74.  The Directorate for Food Safety in the Ministry of Agriculture and Rural Development is the 
national notification authority for SPS matters as regards the WTO and CEFTA. In addition to this 
Directorate, the Ministries of Health, Environment, and Agricultur e and Rural Development are also 
responsible for drafting laws. The National Food Authority (NFA), also under the Ministry of 
 
68 International Committee for Weights and Measures MRA database. Viewed  at: 
https://www.bipm.org/kcdb/cmc/quick -search?keywords=Alb ania. 
69 Law No. 106/2016.  
70 Law No. 105/2016, amended by Law  No. 15/2022.  WT/TPR/S /449 • Albania  
 
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  Agriculture and Rural Development, is responsible for the control of food and animal feed.71 
SPS measures are drafted by relevant competent authorities using a risk -based approach.  
3.75.  In the area of food safety, and as a result of amendments to the Food  Law in 2022, 
consignments of food of animal origin are no longer inspected by border veterinary food safety 
inspectors, but by those re sponsible for the control of food and animal feed (i.e.  NFA, Article  16). 
Such controls are usually carried out at b order inspection posts according to the provisions of the 
Food Law and include inspections of food labels and control of product labels. Imp orts falling under 
a cooperation agreement in the Western  Balkans are controlled at destination point. The NFA licences 
all food business operators as a precondition to import or export, and also those that produce food 
or feed ( Section  2.4). Imports of an imal products are only permitted from establishments and 
countries that are listed for export to the European  Union unless there is a prior agreement in place. 
Imports of non -animal food items can originate anywhere.  
3.76.  Regarding animal health, Law  No. 10465/2011 on Veterinary Services continues to apply, 
having been amended in  2020 and 2022. The revisions in  2020, inter alia, initiated the reform and 
integration of the veterinary services at local and national levels. It  also established a National 
Agency for Veterinary and Plant Protection, organized in four Regional Directorates, that will take 
over additional monitoring responsibilities and be the single responsible body to carry out veterinary 
controls in Albania. Imp orts, exports, and transit of live animals, veterinary medical products, and 
non-food animal products require a veterinary certificate72 and are subject to veterinary control by 
border veterinary inspectors of the NFA. These continue to be based on a manua l from 2006 and a 
Minister's order from 2011. Only registered veterinary medical products can be imported, and to be 
accepted for registration in Albania, products have to be registered for marketing in the 
European  Union. Live animals are kept in quaranti ne for at least 21  days upon importation.  
3.77.  Regarding plant health, the new Law  No. 105/2016 was amended in  2022 in light of recent 
changes to the relevant EU  legislation. According to the authorities, the changes in  2022 allow for a 
continued approximation via implementing legislation, such Order  No. 113/2022 of the Minister of 
Agriculture and Rural Development, setting out protective measures against pests and their entry.  
Imports of plants and plant products (as well as those in transit) must be accompanie d by a 
phytosanitary certificate and continue to be inspected at border posts by NFA inspectors for the 
protection of plants and agricultural inputs. Such controls are mandatory for wood packaging and 
pallet material as well (Article  11). To be imported, p lant protection products have to be registered 
in Albania, which requires their prior registration for marketing in an EU  member  State. Imports 
must be accompanied by a certificate of analysis of the active substances and an import licence of 
the economic operator. The technical manager of the importer being a graduate of the Faculty of 
Agronomy in Albania continues to be a condition to obtain such a licence. Exports require a 
phytosanitary export certificate, with e xports of fruits and vegetables  also fall ing under 
Law No. 105/2016.  
3.78.  The Minister of Agriculture and Rural Development also issued some pest -specific ordinances 
in 2022 (aimed at limiting the spread of Xylellafastidiosa  and tomato brown rugose fruit 
virus (ToBRFV)) . The diagnosis of pests is done according to the diagnostic standards of the 
International  Plant Protection Convention  (IPPC ). Phytosanitary issues are covered by the Strategy 
for Agriculture, Rural Development and Fisheries,  2021-27. 
3.79.  There is no specific l egal framework in place to regulate the release of genetically modified 
organisms (GMOs) into the environment, but the Law on Food regulates the marketing of food 
containing GMOs under certain circumstances. In  2020, new rules regarding animal feed labelli ng, 
including those containing GMO, were approved.73 
3.80.  Albania is a member of the Codex Alimentarius Commission, the World Organisation for 
Animal Health  (WOAH, formerly OIE), the European and Mediterranean Plant Protection 
Organization  (EPPO), and a contrac ting party to the IPPC. It has also signed three regional 
phytosanitary cooperation agreements between 2018 and 2022.  
 
71 National Food Authority. Viewed  at: http://aku.gov.al/ . 
72 For trade with EU  member States, an EU type certificate is used.  
73 Council of Ministers Decision  No. 406/2020.  WT/TPR/S/ 449 • Albania  
 
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  3.81.  During the review period, Albania filed 16  SPS notifications to the WTO in  2016 and 2017, 
mostly relating to the notification of emergency  measures.  
3.3.4   Competition policy and price controls  
3.82.  There were no major changes to the legal framework in the area of competition policy during 
the review period. As described in the previous Review in greater detail74, Law  No. 9121/2003 on 
Competition Protec tion regulates restrictive agreements, prohibits the abuse of a dominant position, 
and provides for prior control of mergers, being largely aligned to the EU  competition framework.75 
It applies to public and private entities engaged in economic activities,  with no sectors carved out 
from the application of the law. The Albania -European  Union Association Agreement also covers 
competition rules as far as they affect trade between the two parties, and it foresees continued 
approximation of the Albanian legisla tion to the EU  acquis . A competition policy spells out the main 
policy objectives in this area.  
3.83.  The Albanian Competition Authority (ACA) reports to Parliament and is tasked with monitoring 
and implementing the legal framework. It can also issue implementin g regulations. A few sector 
regulators76 play a role in competitive outcomes, including by regulating prices (see below), but 
must refer cases of market distortion in sectors they regulate to the ACA. During the review period, 
the structure of the ACA, whi ch includes the Competition Commission and a Secretariat, was 
amended, introducing the role of a Chief Economist and a directorate dealing with European 
integration in  2017.  
3.84.  Individual restrictive agreements covering prohibited practices spelled out in the  law can be 
exempted following approval by the Competition Commission. Such practices include agreements 
on prices, production volumes, allocation of market shares, dissimilar treatment of enterprises, or 
the use of supplementary obligations with no connec tion to the principal contract. During the review 
period, eight such exemptions were granted in the telecommunications, energy, insurance, tobacco, 
and pharmaceutical sectors. A leniency programme linked to the identification of such agreements 
is in place , and can cover partial or full leniency, but until June  2023 no leniency application had 
been made.  
3.85.  The abuse of a dominant position by any company or group of companies is prohibited, and 
certain mergers are subject to prior control. Concentrations that would effectively and significantly 
restrain competition, for example by creating or strengthening a dominant position, are prohibited, 
with the legislative framework allowing for the Competition Commission to consider economic 
efficiencies resulting from the concentration in their assessment. Following notification of a planned 
concentration, the Competition Commission can reject it, or allow such concentration without 
conditions or with certain conditions imposed. Concentrations with companies in serious risk of 
bankruptcy cannot be prohibited if less anti -competitive options are not available.77 During the 
review period, the Competition Commission allowed 166  mergers, and blocked none.  
3.86.  The Secretariat of the ACA undertakes regular market monitoring in a f ew sectors, can initiate 
investigations on their own initiative or based on a complaint from the public, and submits 
investigation reports to the Competition Commission. Based on Competition Commission 
authorization, the Secretariat's investigative powers include the inspection of business and certain 
related private premises and the seizure of documents.  
3.87.  Based on the Law on Competition Protection, the Competition Commission can impose fines 
for infractions, but the Law does not foresee investigations under  the Criminal Code of the Republic 
of Albania. It can also issue cease and desist orders and other civil remedies. Fines for minor 
infringements, such as the provision of incorrect, incomplete, or misleading information, or 
obstructing an investigation, ar e not to exceed 1% of aggregate turnover, while fines for serious 
infractions, such as infringements or the failure to comply with conditions or obligations, can reach 
up to 10% of annual turnover.  
 
74 WTO document  WT/TPR/S/337/Rev.1, 1  August  2016.  
75 European Commission (2022), Albania  2022 Report , SWD  (2022) 332  final. 
76 These include the Energy Regulatory Authority  (ERA), the Albanian Telecommunication and Postal 
Regulator  (ATPR), the Bank of Albania  (BoA), and the Albanian Financial Supervisory Authority  (AFSA).  
77 Law No. 9121/2003, Article  13. WT/TPR/S /449 • Albania  
 
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  3.88.  Between 2016 and 2022, the ACA initiated 86  investigations  and took 559  decisions 
(Table  3.8). These investigations were concentrated in the financial, mobile telecommunications, 
wholesale, and hydrocarbon sectors, according to the authorities. ACA decisions can be appealed in 
court. Between 2016 and 2022, 35  decisions were judged at the First Administrative Court, 12  at 
the Administrative Appeal Court, and 8  at the High  Court.  
Table  3.8 Competition enforcement statistics,  2016 -22 
 2016  2017  2018  2019  2020  2021  2022  
Initiation of case investigations (number)  8 14 13 12 16 12 11 
(i) Cases concerning anti -competitive 
agreements  4 3 4 4 7 7 6 
(ii) Cases concerning abuse of dominance  3 11 6 5 7 4 5 
(iii) Leniency applications  0 0 0 0 0 0 0 
(iv) Notifications of mergers and 
acquisitions  11 16 30 24 19 31 46 
Completed cases (decisions)  52 47 87 93 87 94 99 
(i) Anti-competitive agreements  7 2 8 4 7 28 5 
(ii) Abuse of dominance  5 9 14 11 7 16 8 
(iii) Settlements  0 0 0 0 0 0 0 
(iv) Mergers and acquisitions  12 16 30 24 19 31 50 
Infringement penalties (ALL  million)  0 0 49.7 0 16.0 7.5 224.0  
Appeals (number of completed judicial review 
decisions)  0 7 10 2 3 20 8 
Source:  ACA. 
Price controls  
3.89.  For most of the review period, there were no price controls in effect in Albania, but as a 
response to the war in Ukraine, the authorities established temporary rules for transparency and the 
price monitoring of oil, gas, and their by -products, as well as some basic food products by new ly 
established Price Monitoring Boards during the state of emergency.78 The Acts tasked the two  Price 
Monitoring Boards to (i)  set maximum prices for certain energy products; and (ii)  monitor prices and 
determine and publish profit margins for in basic foo d products basic products (in particular 
sunflower oil, rice, flour, and sugar), to be mandatorily applied by relevant wholesalers  and retailers. 
Non-compliance with these price ceilings or profit margins could be sanctioned.79 In February  2023, 
the mechan ism relating to prices of basic food products was repealed by the Constitutional Court of 
the Republic of Albania, while that for energy products has not applied since June  2023.  
3.90.  Also, prices for some key backbone services (telecommunications services, wat er, and 
electricity) are regulated. In telecommunications, the regulator can impose certain regulated prices 
(Section  4.3.2). Regarding water, the Water Regulatory Authority regulates service tariffs and 
approves water sale prices and tariffs, as well as t ariffs for wastewater and its treatment. It approved 
a new tariff setting document that has applied since  2022 and contains a "cost plus" tariff 
methodology and a new "price cap" methodology, with tariffs being suggested by operators and 
approved by the Au thority.80 While water and wastewater services are only supplied from 
state-owned companies, the methodologies would evenly apply to SOEs and private companies. The 
Energy Regulatory Authority regulates tariffs for electricity transmission and distribution , end-user 
prices for electricity provided by Universal Service Suppliers (no prices using high -voltage 
connections are regulated as of 2022), and purchase prices from relatively small "priority power 
producers".81 It also regulates gas transmission tariff s. 
 
78 Counc il of Ministers Normative Acts  No. 5/2022  (energy products) and No.  7/2022  (basic food 
products).  
79 Such margins were published by the Board on the webpage of the Ministry of Finance and Economy, 
but no fines were imposed. For example, see Ministry of Fina nce and Economy, Decision of the Transparency 
Board of Basket Products Dated  4.5.2022 . Viewed  at: https://financa.gov.al/vendimi -i-bordit -te-transparences -
se-produkteve -te-shportes -date-4-5-2022/ . 
80 Water Regulatory Authority Decision  No. 539, 30  December  2021.  
81 Priority power producers benefit from support under the Law on the Promotion of the Use of Energy 
from Renewable Sources ( Section  4.2). WT/TPR/S/ 449 • Albania  
 
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  3.3.5   State trading, state -owned enterprises, and privatization  
3.91.  During the review period, Albania did not maintain any state trading enterprises within the 
meaning of Article  XVII of the GATT  1994.82 
3.92.  State -owned enterprises continued to play an important role  in parts of the economy, in 
particular in backbone services such as transport, telecommunications, and energy, but also in 
certain social services, as well as in the marketing of some goods. They can be owned by the Ministry 
of Finance  and Economy , other central government entities, or local institutions.  
3.93.  The Ministry of Finance and Economy holds a majority ownership in 14  joint stock companies 
(JSCs), 12  of which it owns fully. The Ministry is the minority owner in another 12  JSCs, and 
15 limited liabilit y companies (LLCs) ( Table  3.9). Various central and local institutions also continue 
to hold ownership in additional enterprises that are either JSCs with majority or minority ownership 
or LLCs. These include enterprises in strategic sectors such as energy  and oil processing, as well as 
water and sewage companies. During the review period, there were a number of changes to the 
structure and ownership of SOEs, with a number of JSCs merged or liquidated, or their ownership 
transferred to other state instituti ons. Employment of central government SOEs accounted for 
1.6%  of total employment in  2021. Albania maintains a partial list of SOEs online, which does not 
include employment or financial information.83 
Table  3.9 Majority state -owned joint -stock enterprises,  2022 (at central level)  
(ALL million)  
 
82 WTO documents  G/STR/N/19/ALB, 2  November  2022; and G/STR/N/16/ALB, G/STR/N/17/ALB, 
G/STR/N/18/ALB, 3  September  2020.  
83 OECD  (2021), Competitiveness in South East Europe 2021  – A Policy Outlook , Chapter  9. Viewed  at: 
https://doi.org/10.1787/dcbc2ea9 -en. See also INSTAT, Public Sector Classification Process . Viewed  at: 
https://www.instat.gov .al/media/10496/sektori -publik_viti -2021xls.xlsx . Company  Activity  Sales 
volume  Net profit  Ministry  State 
ownership  
(%) 
Agrokredit, Tiranë  Granting loans  208.4  -36.0 Ministry of 
Finance and 
Economy (MoFE)  100 
Alba Film Studio  Leasing (visual media) 
and management of film 
archive  0 -1.6 Ministry of 
Culture  100 
Albcontrol, Tiranë  Provision of air traffic 
control services  2,748.2  513.5  MoFE  100 
Albgaz  Transmission and 
distribution of natural 
gas 0 0 Ministry of 
Infrastructure 
and Energy (MIE)  100 
Albpetrol  Oil extraction and 
implementation of 
hydrocarbon agreements  95,892 
tonnes of 
crude oil  16.2 MIE 100 
Hekurudha Shqiptare,  
Durrës  Rail transport (passenger 
and freight)  86.8 -427.1  MoFE  100 
KESH  Electricity generation and 
trading  5,700 TWh  –220 
(EUR million)  MIE 100 
Korporata e 
Investimeve 
Shqiptare, Tiranë  Making investments by 
mobilizing state and/or 
private capital  0 -19.5 MoFE  100 
Lanabregas  Electricity generation  .. .. MIE 100 
Operatori i Sistemit të 
Transmetimit, Tiranë  Transmission of 
electricity  8,922.4  922.1  MoFE  100 
OSHEE  Sale and distribution of 
electricity  73,259  5,229  MIE 100 
Porti Detar Sarandë  Port services  39.1 -51.1 MoFE  100 
Porti Detar Shëngjin  Port services  73.2 -28.9 MoFE  100 
Porti Detar Vlorë  Port services  93.6 -55.5 MoFE  100 
Posta Shqiptare, 
Tiranë  Postal services  2,737.3  -40.3 MoFE  100 
Prodhim Mobilje, 
Tiranë  Leasing (tire sales)  16.7 -29.0 MoFE  100 WT/TPR/S /449 • Albania  
 
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  .. Not available.  
Source:  Ministry of Finance and Economy.  
3.94.  SOEs benefit from direct transfers and indirect budget support including public guarantees, 
with such contingent liabilities accounted for in the debt stock. According to the IMF, the SOEs in 
the electricity sector on avera ge received transfers of 0.4% of GDP per year, but received much 
larger subsidies to the tune of 1.3% of GDP in  2022 to compensate for higher import electricity 
prices as a result of the war in Ukraine.84 Overall, outstanding loans and guarantees to SOEs i n the 
economy at the end of 2022 amounted to ALL  57 billion (of which ALL  37 billion were loans), nearly 
all for the power and water sewerage sectors.  
3.95.  A 2018  OECD assessment of SOEs in Southeast Europe found that Albanian SOEs performed 
relatively poorly i n terms of efficiency and governance, while ranking better in terms of transparency 
and accountability.85 No central institution overseeing the performance of all SOEs is in place with 
SOEs reporting certain budget and performance data to their General Ass emblies (i.e.  owners) and 
each Ministry responsible for the SOEs it owns. While general rules were put in place in  2018, 
until 2022 there were no rules regarding the independence of, nor specific qualifications 
requirements in place concerning the composit ion of, SOE Boards of Directors, which are jointly 
appointed by the owner and administrator of each SOE. Vice Ministers or other civil servants are 
frequently part of these boards. In  2022, an Instruction by the Minister of Finance and Economy 
established certain rules for the appointment and functioning of Boards in State -Owned Joint Stock 
Companies.86 Board members have to be employees of central state institutions with at least 
five years  of experience, with certain additional requirements to prevent con flicts of interest. There 
are no additional technical qualification requirements in place.  
3.96.  Privatization continues to be guided by two 1998  laws, as amended, focusing on companies 
operating in non -strategic sectors on the one hand, and on sectors of strate gic importance on the 
other. Privatizations are administered by the Ministry of Finance and Economy (taking over this role 
from the National Agency for Privatization in  2006), and between 2015 and 2022, three SOEs87 and 
other assets have been privatized, valued approximately at ALL  5 billion. SOEs owned by other 
central Ministries would be privatized by those Ministries, according to the authorities.  Maintaining 
domestic ownership in an enterprise is considered a rat ionale for state ownership.88 
3.3.6   Government procurement  
3.97.  Government procurement spending in Albania increased from  7% of GDP in 2017 to  8.9% 
in 2021 but was significantly higher at 14.7% in  2020 in response to the 2019 earthquake and the 
COVID -19 pandemic ( Table  3.10). Albania applied for accession to the WTO  Agreement on 
 
84 IMF Country Report No.  22/362 . 
85 OECD  (2018), Competitiveness in South East Europe  – A Policy Outlook , Chapter  6.  
86 Ministry of Finance and Economy Instruction  No. 11/2022. Viewed  at: 
http://qbz.gov.al/eli/udhezim/2022/04/04/11 . 
87 They were one majority -owned JSC, one minority -owned JSC, and one LLC.  
88 OECD  (2021), Competitiveness in South East Europe  – A Policy Outlook , p. 266.  Company  Activity  Sales 
volume  Net profit  Ministry  State 
ownership  
(%) 
Regjistri Detar, Durrës  Registration of vessels  47.1 13.6 MoFE  100 
Shtypshkronja e 
Letrave me Vlerë, 
Tiranë  Printing of securities  187.7  24.6 MoFE  100 
Trajtimi Studentëve, 
Korçë  Student accommodation 
and services  17.9 -13.2 MoFE  100 
Trajtimi Studentëve, 
Vlorë Student accommodation 
and services  43.0 -5.7 MoFE  100 
Qendra e Regjistrimit 
të Aksioneve  Registration of stocks  6.5 -3.1 MoFE  85 
Tregu i shitjes me 
shumicë Fruta -Perime, 
Shkodër  Marketing fruits and 
vegetables  7.6 -3.7 MoFE  67 WT/TPR/S/ 449 • Albania  
 
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  Government Procurement in  2001. While the accession process had been inactive since  2007, the 
authorities in  2023 indicated that they would reactivate it.89 
Table  3.10 Government procurement,  2017 -22 
(ALL million ) 
Year  Level  Total value  
of procurement 
published  Share  
of GDP  
(%) Procurement subject to 
international competitive bidding 
(above high monetary threshold)  
Total value  Share of total 
procurement  
(%) 
2017 Total 109,620  7.0 11,150  10.0 
2018 Total 129,820  7.8 8,779  6.8 
2019 Total 110,664  6.5 15,591  14.0 
2020 Total 264,072  14.7 120,617  46.0 
2021 Total 149,320  8.9 63,932  42.8 
2022 Total 170,201  9.4 90,135  53.0 
Note:  No breakdown for central, subcentral, and other government procurement was available. Data 
include all government procurement above the monetary thresholds for small value procurements 
(ALL 1 million).  
Source:  Public Procurement Agency.  
3.98.  The share of procedures awarded without the publication of a public notice declined 
from 38.8% in  2015 to 3.3% in  2022, and their value from 12.1% to 0.7% as the use of the 
electronic procurement system became also mandatory for the negotiated procedure in  2018. 
During  2020, the year with significantly higher government procurement expenditures due to the 
earthquake and the COVID -19 pandemic, the share of non -public tenders90 overall was higher at 
8.4%, primarily driven by emergency -related tenders. At around 3%, the sh are of non -public tenders 
among the non -emergency related tenders remained in line with the share of non -public tenders in 
other years.  
3.99.  During the review period, the authorities undertook major reforms of the government 
procurement framework in efforts to align it with the framework in place in the European  Union. 
In 2020, they approved a Government Procurement Strategy for the period 2020 -23 which,  
inter alia, aims to ensure efficient and sustainable government procurement, improve the Public 
Private Partn ership (PPP) framework, and establish an efficient complaint review system.91 
3.100.   The Association Agreement with the European  Union92 foresees mutual opening of the 
Albanian and EU government procurement markets for suppliers established in either of both part ies. 
It further foresees the alignment of Albanian laws to the EU  acquis . FTAs with CEFTA and the 
United  Kingdom also include provisions on market opening for government procurement, while those 
with EFTA and Türkiye only include provisions on transparency . 
3.3.6.1   Legal framework  
3.101.   Three laws regulate government procurement in Albania: (i)  the new Public Procurement 
Law (Law  No. 162/2020) was approved in late December  2020 and entered into force in March  2021, 
repealing the earlier Law  No. 9643/2006; (ii)  the Law on  Concessions and Public Private Partnerships 
(Law No. 125/2013), amended by Law  No 50/2019; and (iii)  Law No. 36/2020 on Defence and 
Security Procurements, approved by Parliament in April  2020.  
3.102.   The Public Procurement Agency under the Prime Minister oversees the implementation of 
government procurement overall and its compliance with the laws; can take remedial action in case 
of violations, analyses, and reports on government procurement data; and  makes relevant legal 
 
89 WTO, GPA: Parties and Observers . Viewed  at: 
https://www.wto.org/english/tratop_e/gproc_e/memobs_e.htm . 
90 Using a negotiated procedure without prior publication of contract notice.  
91 National Str ategy for Public Procurement for 2020 -23 and an action plan for its implementation, 
approved by Council of Ministers Decision No.  850/2020.  
92 Stabilisation and Association Agreement between the European  Communities and their Member 
States, of the one part,  and the Republic of Albania, of the other part.  WT/TPR/S /449 • Albania  
 
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  proposals. The Public Procurement Commission (PPC), established in  2009 and since  2017 an 
independent institution financed from the budget, reports to the National Assembly and reviews 
procedural complaints under the Public Procuremen t Law if a review by the contracting authority has 
not led to a resolution (under the new law, complaints are simultaneously submitted to the 
contracting authority and the PPC). It also reviews complaints under the Concessions and PPP Law. 
Decisions taken by the Commission are final but can be appealed in the Court of Appeals. Certain 
provisions against potential conflicts of interest or influencing the Commission's members are in 
place. In  2022, the Government reformed the State Agency for Centralized Proc urement. The State 
Agency is subordinate to the Ministry of Interior and centrally procures certain consumable goods 
such as vehicles, fuel, clothing, or insurance for most government entities with some exceptions 
(e.g. procurement by the Ministry of Defen ce or that of fuel for use by farmers).93 
3.103.   The Public Procurement Law largely transposes relevant EU  legislation, in particular 
Directive  2014/24/EU on Public Procurement and Directive  2014/25/EU on Procurement by Entities 
Operating in the Water, Energy, Tr ansport and Postal Services Sectors.94 It covers government 
procurement by contracting authorities95, including government -owned or -controlled entities, and 
establishes three thresholds for government procurement of contracts of high  value (above 
ALL 650 million for works, or 40  million for goods and services), low  value (above ALL  12 million for 
works, or 10  million for goods and services), and small  value. Procurement below this threshold of 
ALL 100,000  (EUR 860) are not subject to procurement procedures . Article  3 of the Public 
Procurement Law spells out that procurement is to be undertaken in a transparent manner and 
without discrimination to ensure competition. According to the authorities, there are no preferences 
for local suppliers in place, or diff erentiation based on nationality.  
3.104.   The new law introduced significant changes to the previous framework, including clarification 
and broadening of the application of the law ( inter alia, regarding exemptions, mixed procurement, 
or contract modifications), increasing transparency, streamlining information submission and 
contract management, aligning certain terminology and procurement procedures with those outlined 
in the relevant EU  Directives, adding competencies regarding monitoring to the P urchase Power 
Agreement (PPA) , and improving rules regarding complaints (including the introduction of a stand -
still provision).96 
3.105.   All notices must be published in the electronic procurement system an d in abbreviated form 
in the Public Notices Bulletin, with notices above the upper monetary threshold (as well as other 
notification depending on commitments made to the European  Union) also published in the Official 
Journal of the European  Union.97 Since mid-2021, operators can also file complaints online using the 
e-Albania system.  
3.106.   The Concessions and PPP Law regulates the agreements of PPPs in sectors usually covered 
by PPP laws, including sectors such as tourism or agriculture. The law was amended in  2019, 
primarily regarding approval and other administrative processes.98 The Council of Ministers may 
expand the scope of the law to other sectors based on proposals from line Ministries or other 
government entities.99 Certain activities, such as immovable p roperty or air transport services, are 
excluded from the provisions. Contracting authorities are allowed to open tenders based on 
unsolicited proposals although the reforms in  2019 aimed to significantly reduce their use.100 
Until 2019, authorities were abl e to grant the proposing economic entity a certain bonus during the 
evaluation of unsolicited proposals. As part of the 2019 amendment, the sectors eligible for 
unsolicited proposals were limited to certain backbone infrastructure, and also only losing bid ders 
can now be compensated for feasibility studies undertaken (up to a value of 1% of the final 
 
93 Council of Ministers Decision  No. 393/2022.  
94 SIGMA/OECD (2021), Monitoring Report: The Principles of Public Administration, Albania , 
pp. 155-156. Viewed  at: https://www.sigmaweb.org/publications/Monitoring -Report -2021-Albania.pdf . 
95 Contracting authorities are defined as government institutions (including local self -governments) as 
well as non -commercial entities primarily funded by the Government such as government -owned 
or -controlled  enterprises. Such authorities are called contracting entities where they relate to the procurement 
of sectoral contracts (gas and heating, electrical pow er, water supply, transportation services, ports and 
airports, and postal services). Law  No. 162/2020, Article  4. 
96 Albanian Institute of Science (2022), Public Procurement  – Albania through the Lens of European 
Integration . Viewed  at: https://ais.al/new/wp -content/uploads/Public -Procurement -Policy -Paper -AIS.pdf . 
97 Law No. 162/2020, Article  56. 
98 Law No. 50/2019.  
99 Law No. 125/2013 , Article  4. 
100 World Bank  (2022), Country Private Sector Diagnostic: Creating Markets in Albania , pp. 54-55. WT/TPR/S/ 449 • Albania  
 
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  investment value). Procedures for PPP generally follow some of the procurement methods defined 
in the Public Procurement Law. In its latest Article  IV report, the IMF stressed the importance of 
ensuring that the Ministry of Finance and Economy play a stronger role in PPP selection and there is 
a stronger link with public investment management to maximize value for money and limit related 
fiscal risks.101 
3.107.   The Law on Defence and Security Procurements generally follows the relevant 
EU Directive.102 While Article  1 spells out the scope for contracts related to the fields of defence and 
security, some commentators have pointed to a broad range of provisions applicable i n a wide array 
of situations, allowing such procurement to be undertaken outside the regulatory framework thus 
limiting transparency.103 In 2022, 18  contracts were signed under related procedures.104 
3.108.   Over the review period, the Government also continued to a dapt secondary legislation, 
including issuing revised government procurement rules in  2021, replacing earlier rules.105 
3.3.6.2   Procurement methods, procedures, and outcomes  
3.109.   The Public Procurement Law defines the following procurement methods for procurement 
above the low -value threshold (with timelines varying for those above the high -value threshold): 
(i) open procedure; (ii)  restricted procedure; (iii)  competitive negotiated procedures; 
(iv) partnership for innovation; (v)  competitive dialogue; (vi)  negotiated pr ocedure with prior 
publication of contract notice; (vii)  negotiated procedure  with prior contract  notice (for sectoral 
procurement); (viii)  negotiated procedure  without  prior contract  notice; (ix)  simplified open 
procedure; and (x)  consultancy services. A special procurement regime applies to social services.106 
Procurement methods also apply to framework agreements, and legislation also foresees the use of 
dynamic purchasing systems and electronic auctions. For certain procurements that relate to state 
secrets or would require the publication of certain, not clearly defined, sensitive information, the law 
states that a "classified" procurement method can be used.107 
3.110.   For procurement below the low -value threshold (i.e.  for small-value procurements), a 
simplifie d procedure is defined in the procurement rules.  
3.111.   During the review period, the value of procurement using the negotiated procedure declined 
from 12.1%  to 0.7%, while that using framework agreements increased from  0.3%  to 30.6% 
(Table  3.11). 
Table  3.11 Value and share of contracts awarded under different government 
procurement methods,  2015 -22 
(ALL million (value) and %  (share) ) 
Procurement method  2015  2016  2017  2018  2019  2020  2021  2022  
Framework Agreement  Value  168 951 555 10,707  20,521  39,428  43,006  55,041  
Share  0.3 1.0 0.6 10.0 19.9 21.6 18.9 30.6 
Dynamic purchasing 
system and electronic 
auction  Value  0 0 0 253 376 59 124 302 
Share     0.2 0.4 0 0.1 0.2 
Open procedure (paper 
and electronic formats)  Value  62,389  86,364  82,242  90,302  79,360  99,592  125,658  89,647  
Share  87.6 90.5 89.7 84.6 76.8 54.7 55.1 49.9 
 
101 IMF Country Report  No. 22/362, p.  13. 
102 Law No. 36/2020; and European  Union Directive  2009/81/EC.  
103 Centre for European Security Studies  (2022), Elusive Standards: Governance and Oversight of 
Security Sector Procurement in Albania , CESS  Policy  Brief No. 7. Viewed  at: https://cess.org/wp -
content/uploads/2022/05 /CESS -Policy -Brief_7 -2022_EN.pdf . 
104 Public Procurement Agency, Annual Report  2022. Viewed  at: https://www.app.gov.al/about -
us/annual -reports/ . 
105 Council of Ministers Decision  No. 285/2021.  
106 Council of Ministers Decision  No. 768/2021 on Determining the Types of Social Services and Other 
Specific Services, Types o f Special Services, for which the Right of Participation of Organizations in 
Government Procurement Procedures Can Be Reserved, as well as Detailed Rules for their Procurement.  
107 Law No. 162/2020, Articles  10 and 12. WT/TPR/S /449 • Albania  
 
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  Procurement method  2015  2016  2017  2018  2019  2020  2021  2022  
Simplified open 
procedure  Value  0 0 0 0 0 0 3,132  7,823  
Share        1.4 4.4 
Restricted procedure 
(paper and electronic 
formats)  Value  82 0 0 0 0 35,113  47,049  24,070  
Share  0.1     19.3 20.6 13.4 
Consultancy service  Value  7 28 1,332  1,493  763 1,974  2,583  1,531  
Share  0 0 1.5 1.4 0.7 1.1 1.1 1.0 
Negotiated procedure 
(without prior 
publication)  Value  8,611  8,029  7,577  3,964  2,281  5,985  6,512  1,274  
Share  12.1 8.5 8.3 3.7 2.2 3.3 2.9 0.7 
Total value   71,257  95,372  91,704  106,719  103,301  182,151  228,065  179,687  
Source:  Information provided by the authorities.  
3.112.   The share of the value of procurement contracts won by foreign suppliers was below  1% 
in 2019 and  2020 but reached  12.5% in  2021.  
3.3.6.3   Enforcement  
3.113.   During the review period, the PPC reviewed 7,993  cases (out of 8,219  raised) and took 
decisions for 6,173  cases. Following the introduction of the new Public Procurement Law, complaints 
are submitted to the contracting authority and the PPC at the same time, with the PPC only reviewing 
them in case a review by the contracting authority does not lead to a resolution. The number of 
complaints ra ised and reviewed per year declined during the review period and stood at below  800 
in each of the last 3  years. Of the nearly 3,800  rejected claims during the review period, 
491 decisions were appealed to the court and among those the claimant won in 87  cases. 
3.3.7   Intellectual property rights  
3.114.   Albania continued its efforts to align its IP -related regulatory framework to the EU  acquis , 
with the most notable changes being the revision of the Law on Industrial Property and the adoption 
of a new Copyright  Law. As d escribed in the previous Review, key commitments originated in the 
SAA, but the newly starting accession process is expected to provide further impetus to the efforts 
of aligning national laws to the EU  acquis . According to the European  Union's  2022 assess ment of 
the IPR framework, the alignment remains incomplete.108 
3.115.   Since  2017, the General Directorate of Industrial Property  (GDIP), an autonomous agency 
under the Ministry of Finance and Economy, and the Copyright Directorate at the Ministry of Culture, 
are the main institutions for intellectual property rights  (IPRs). This represents a small change from 
the structure in place at the time of the previous Review. The GDIP replaced the General Directorate 
of Patents and Trademarks  (GDPT) following an amendment of the Law on Industrial Property 
(Law No. 9947/2008) by Law  No. 17/2017. That law also increased the autonomy of the GDIP by 
giving it own revenues and budgetary independence, with profits distributed to the State. In  2016, 
the Copyright Office was transf ormed into the Copyright Directory at the Ministry of Culture and 
remains responsible for proposing and drafting strategies and the legal framework concerning the 
protection, exercise, and enforcement of copyright and related rights. The Directorate also l icences 
and supervises collective management organizations  (CMOs) and administers a database on 
copyright and other rights. Copyright enforcement was transferred to the Inspectorate for Market 
Surveillance  (SIMS) in  2016 (see below).  
3.116.   For most of the review  period, the National Strategy on Intellectual Property (2016 -20) 
guided policy making, with a new Strategy for 2022 -25 approved in  2022.109 In the context of the 
process of European integration, the new Strategy foresees the drafting of a separate law for each 
object of industrial strategy, which would significantly overhaul the existing IPR framework.  
3.117.   In 2018, Albania acceded to the Vienna Agreement Establishing an International 
Classification of the Figurative Elements of Marks, the Locarno Agreement Esta blishing an 
 
108 European Commission (2022), Albania  2022 Report , SWD  (2022) 332  final. 
109 Council of Ministers Decision No.  350/2022.  WT/TPR/S/ 449 • Albania  
 
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  International Classification for Industrial Designs, and the Lisbon Agreement on the protection of 
designations of origin and their international registration, as well as the Geneva Act of the Lisbon 
Agreement on designation of origin and geogr aphical indications. These add to the large number of 
treaties and conventions to which Albania is a party110, which include being a member of the 
European Patent Organization  (EPO), the World Intellectual Property Organization  (WIPO), the Paris 
Convention for the Protection of Industrial Property, and the Berne Convention for the Protection of 
Literary and Artistic Works. Albania is also collaborating with the European  Union Intellectual 
Property Office  (EUIPO).  
3.118.   Albania is a net importer of IP although its exports grew significantly faster than its imports 
during the review period ( Table  1.3). Imports of IP royalties and licence fees increased from 
EUR 22.2 million in  2015 to EUR  29.4 million in  2021, while exports increased from EUR  1.8 million 
to EUR  16.5 million.  
3.3.7.1   Domestic IP regime and recent developments  
3.119.   The main IP -related objective in Albania is to stimulate economic, scientific, and cultural 
development, while balancing the rights of IP  owners with the interests of users.111 The legal 
framework primaril y consists of Law  No. 9947/2008 on Industrial Property (last amended 
by Law No. 96/2021) and Law  No. 35/2016 on Copyright and Related Rights (last amended 
by Law No. 37/2022). The framework is complemented by Law  No. 8880/2002 on Plant 
Breeders'  Rights (la st amended by Law  No. 68/2013) and Law  No. 8488/1999 on the Protection of 
Topographies of Integrated Circuits (last amended by Law  No. 66/2014), as well as relevant 
secondary legislation. Some of laws and secondary legislation underwent revisions during th e review 
period, primarily to harmonize the framework with the EU  acquis . Table  3.12 provides an overview 
of the main features and legal basis of various IPR objects. The protection of patents, trademarks, 
and copyrights applies to national and foreign citizens equally.  
Table  3.12 Main featur es of the IPR regime  
IPR Patents  Trademarks  Industrial 
designs  GIs Copyrights 
and related 
rights  
Object of 
protection  A new process 
or product  A distinctive 
sign Appearance of a 
product or part 
thereof  Geographical name 
designating a product 
whose specific 
quality, reputation, or 
other characteristics 
can be attributed to 
geographical origin  Literary, 
artistic, and 
scientific works  
Term of 
protection  20 years from 
filing date  10 years with 
unlimited 
possibility of 
renewal  25 years from 
filing date  5 years with 
unlimited possibility 
of renewal  General term: 
lifetime of 
author plus 
70 years after 
death; term 
varies by type 
or nature of 
work 
How to obtain 
protection  By registration  By registration  By registration  By registration  Automatica lly 
with the 
creation of the 
work 
Who can get 
protection  Any natural or 
legal person  Any natural or 
legal person  Creator or legal 
substitute  A group acting in the 
delimited area, 
regardless of the 
legal form of 
organization  Author and/or 
rights holder  
Rights 
conferred  Exclusive right  Exclusive right  Exclusive right  Right of use  Exclusive moral 
and economic 
rights  
Legal basis 
(law) No. 9947/2008 
on Industrial No. 9947/2008 
on Industrial No. 9947/2008 
on Industrial No. 9947/2008 on 
Industrial Property  No. 35/2016 on 
Copyright and 
 
110 For an overview of conventions and treaties on IPRs to which Albania was a party at the time of the 
previous Review, see WTO  document  WT/TPR/S/337/Rev.1, 1  August  2016, p.  67. 
111 National Strategy for Intellectual Property  2022-25. WT/TPR/S /449 • Albania  
 
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  IPR Patents  Trademarks  Industrial 
designs  GIs Copyrights 
and related 
rights  
Property  Property  Property  Related Rights  
Last amended 
by law  No. 96/2021  No. 96/2021  No. 96/2021  No. 96/2021  No. 37/2022  
Source:  WIPO  Lex. Viewed  at: https://www.wipo.int/wipolex/en/main/legislation ; and relevant laws.  
3.120.   The legal framework for patents and industrial designs did not change significantly during 
the review period, but amendments to the Law on Industrial Property in  2021 introduced the concept 
of trade secrets into the framework.112 According to the authorities the contained provisions largely 
align the legal framework with the EU acquis  in this area, in particular Directive  (EU) 2016/943. 
Industrial designs are only protected following their registration, and they are currently not protected 
for a transition period after having first been made available publicly, as in the EU  framework. Patent 
bulletins are published on average 4  times a month, with the average time for a patent to be granted 
around 21  months.  
3.121.   In addition to a regular process for the granting of compulsory licences under strict 
conditions outlined in Article  50, Article  51 of the Law on Industrial Property also allows the Ministry 
of Defence and the Ministry of Health to directly grant compulsory licences for reasons of national 
security, also against compensation. Such decision can be appealed. As at the time of the previous 
Review, the registration of inventions relating to "state  secrets" continues to be undertaken by the 
Ministry of Defence, with the Ministry having the right to use the patent, subject to compensation to 
the rights holder. As previously, there have been no applications for such patents during the review 
period.  
3.122.   In terms of trademarks, the regulatory framework was adapted during the review period to 
further clarify restrictions on the registration and use of domestic trademarks that would infring e 
the rights of "well -known" trademarks of wide territorial use.113 Council of Ministers Decision 
No. 315/2018, repealing Decision No.  1706/2008, spells out some general criteria to assess whether 
a trademark can be considered well -known. Trademark bulletin s are published twice a month. 
According to the authorities, a new law on trademarks is being drafted and is expected to be adopted 
in December  2023.  
3.123.   Regarding geographic indications  (GI), amendments to the Law on Industrial Property by 
Law No. 17/2017 cha nged the application process for a GI or designation of origin  (DO) to be made 
generally by groups (rather than by individuals, as was the case previously), except in very specific 
circumstances and determined a competent authority for the assessment of ap plications. 
Applications from foreign producers for registration of GIs have to be accompanied by evidence that 
the GIs are protected in the country of origin. The Ministry of Agriculture is responsible for the 
assessment of all applications, with the GDIP  registering GIs and DOs in case of a positive 
assessment from the Ministry. All registered GIs and DOs are published in the IP register.  
3.124.   At the time of the previous Review, a new Law on Copyright and Related Rights was being 
developed, aiming to ensure a better protection of copyright and related rights. Law  No. 35/2016 
on Copyright and Other Related Rights was adopted in  2016, replacing Law  No. 9380/2005. 
According to the Law, the legislative framework is fully aligned with seven of the relevant 
EU Direct ives. The new law, inter alia, expanded the scope of copyrighted works and authorship, 
introduced a simplified system for the payment of licence fees, and introduced certain remedial 
measures for rights holders (including the ability to apply for a prelimi nary injunction).114 The Law 
also adjusted the way CMOs are regulated, which require a licence from the Ministry of Culture. The 
new law was amended in  2022, addressing challenges that had emerged regarding the functioning 
of CMOs and further aligning the l egal framework with the EU  acquis , including regarding orphan 
works and the use of copyrights and other rights for the benefit of persons who are blind, visually 
impaired, or otherwise print -disabled.115 
 
112 Amendments by Law  No. 96/2021.  
113 Law No. 9947/2008, Article  143, as amended by Law  No. 17/2017.  
114 WIPO (2016), "Albania: Law No.  35/2016 of March  31, 2016, on Copyright and Related Rights", 
20 October. Viewed  at: https://www.wipo.int/news/en/wipolex/2016/article_0017.html . 
115 Law No. 37/2022.  WT/TPR/S/ 449 • Albania  
 
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  3.125.   There are currently no provisions in place regarding the infringement of copyrights online.  
3.126.   The application for the registration of copyright or the transfer of copyright can be made 
through the e -Albania system since  2020, and those for patents, trademarks, industrial designs, and 
GIs since  2022.  
3.127.   During the  review period, Albania submitted two notifications regarding modifications to its 
IP regime, in particular the copyright regime, to the TRIPS  Council in  2021, and they notified contact 
points in  2020.116 Other legislative changes referred to in this sectio n had not been notified at the 
end of August  2023.  
3.128.   Overall, during the review period the use of IPRs has varied without strong trends.117 The 
annual number of patents filed ranged from  3 to 52, according to WIPO, while the GDIP reported 
between 580 and 925  patent  applications  per year, a figure that includes European patents requiring 
validation in Albania ( Table  3.13). According to the authorities, the Copyright Directorate has 
received more than 1,500  requests for the registration of copyrights since  2016.  During the period 
2016-22, 62  cases were appealed to the courts, 5  cases being in the Administrative Court of First 
Instance of Tirana, 50  were appealed to the Administrative Court of Appeal, 3  final decisions were 
taken, and 4  cases being at the Supreme Court.  
3.129.   Since  2021, the GDIP has maintained the Industrial Property Database electronically, 
according to Articles  183/a  and 183/b of the amended Law on Industrial Property.  
Table  3.13 IPR protection, by type,  2016 -22 
(Number)  
 2016  2017  2018  2019  2020  2021  2022  
Applications  
Patents  745 813 921 914 898 948 619 
Industrial designs  9 12 16 16 15 49 19 
Topographies of integrated circuits  - - - - - - - 
Trademarks  1,055  1,161  1,294  1,157  1,164  1,404  1,165  
Trademarks via Madrid Protocol  2,207  2,264  2,463  2,230  2,157  2,102  2,066  
Geographical indications  2 6 2 3 - - - 
Appellations of Origin  - - - - 1 1 1 
Utility models  4 1 2 1 2 3 3 
Registrations  
Patents  678 770 825 970 842 924 634 
Industrial designs  2 12 8 12 13 14 37 
Topographies of integrated circuits  - - - - - - - 
Trademarks  1,053  803 810 978 1,115  1,246  963 
Trademarks via Madrid Protocol  2,401  2,732  2,843  2,649  2,721  2,443  2,597 
Geographical indications  - 5 3 2 1 - - 
Appellations of Origin  - - - - - - 1 
Utility models  1 3 2 2 - 1 1 
Board of Appeals  74 94 10 22 32 23 39 
- Nil. 
Source:  General Directorate of Industrial Property.  
3.3.7.2   Enforcement  
3.130.   An Inspectorate for Market Surveillance  (SIMS) was established in 2016, tasked with 
guaranteeing the protection of intellectual property  (IP) in the domestic market.118 The first 
inspections regarding infringements of copyright and related rights, as well as those relating to the 
violation of industrial property rights  or trademarks, started in  2017 and generally increased during 
 
116 WTO, e -TRIPS Gateway. Viewed  at: https://e -trips.wto.org/ . 
117 WIPO, Intellectual Property Statistical Country Profile 2021: Albania , last updated March  2023. 
Viewed  at: https://www.wipo.int/edocs/statistics -country -profile/en/al.pdf . 
118 SIMS was established by Council  of Ministers Decision  No. 36/2016. In addition to the tasks related 
to IP, it is also responsible for inspecting product marks in the domestic market.  WT/TPR/S /449 • Albania  
 
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  the review period ( Table  3.14). The significant number of industrial property inspections in  2018 
aimed to establish a database of IP users, with inspections subsequently based on complaints fi led. 
Since  2018, SIMS has also imposed administrative measures (fines and warnings) following such 
investigations. Total fines imposed amounted to ALL  6.4 million in  2022. Where administrative 
measures are imposed, affected parties can appeal these decisio ns before the Appeal Commission 
at SIMS and that Decision before the Administrative Court of the first instance. As of May  2023, the 
authorities indicated that 70%  of appeals were rejected between 2020 and 2022.  
Table  3.14 IP-related cases,  2016 -22 
(Number, unless otherwise specified)  
Description  2016  2017  2018  2019  2020  2021  2022  
IPR-related cases led by the Inspectorate for Market Surveillance  
Criminal proceedings initiated  .. .. .. .. .. .. .. 
Inspections relating to infringements of 
copyright and related rights  0 232 401 386 384 513 350 
Inspections relating to violation of industrial 
property rights, including trademarks  0 0 336 2 12 11 107 
Administrative measures imposed         
Copyright  0 0 105 40 28 80 44 
Industrial property    74 2 8 8 29 
Fines imposed (ALL  million)  0 0 15.0 3.6 3.4 7.1 6.4 
IPR-related cases led by Customs  
Applications for action (AfA) registered in the 
Customs register  72 86 97 105 108 115 127 
Detentions (based on AfA and/or ex officio  
procedure)  7 9 8 6 4 3 3 
Seizures (goods susceptible to be counterfeited 
or pirated) (ALL  million)  17.3 254.8  13.8 24.1 21.9 3.1 5.8 
Destroyed counterfeited products (ALL  million)  1.0 2.2 1.7 1.6 1.2 0.4 1.8 
Otherwise disposed  – donations (ALL  million)  0 0 0 0 0 0 0 
.. Not available.  
Source:  Information provided by the authorities.  
3.131.   Revisions to the Law on Industrial Property in  2021 clarified procedures for handling 
complaints and requests from rights holders as well as regarding ex officio  inspections on the 
domestic market. According to the authorities, a methodology for risk analy sis and assessment was 
drafted in  2022, and SIMS started to undertake ex officio  inspections in September  2022. Following 
these developments, SIMS for the first time took two decisions regarding permanent seizure and 
destruction of counterfeit goods in  2022. 
3.132.   As far as imports are concerned, rights holders can submit an application for action  (AfA) to 
the General Customs Directorate, requesting to prohibit the release for circulation, or the exportation 
or re-exportation of counterfeited or pirated goods.119 The Customs authorities also have the right 
to investigate IPR infringements ex officio120, and rights holders can submit an AfA when notified in 
case Customs has detained goods in such cases. Based on AfAs and subsequent investigations, 
Customs suspended t he release of 3,000  products suspected of infringing IPR in  2021, a decrease 
from the more than 23,000  products in  2020.121 Between 2016 and 2022, Customs also destroyed 
counterfeit goods valued at ALL  9.9 million ( Table  3.14). 
3.133.   Under the Penal Code, the unl awful production and distribution of industrial goods on a 
commercial scale are subject to a fine or imprisonment for up to two  years (more when it had 
"serious" consequences), certain infringements of author's rights can be penalized by a fine or 
imprison ment of up to one  year, and certain infringements of copyrights by fine or imprisonment of 
up to four  years. During the review period, around eight  persons were imprisoned following 
IPR violations.  
 
119 Council of Ministers Decision  No. 651/2017 spells out related procedures.  
120 Customs, Application for A ction in Customs . Viewed  at: 
https://www.dogana.gov.al/english/c/184/305/protection -of-intellectual -property . 
121 European Commis sion (2022), Albania  2022 Report , SWD  (2022) 332  final. WT/TPR/S/ 449 • Albania  
 
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  4  TRADE POLICIES BY SECTOR  
4.1  Agriculture, forestry, and fisheries  
4.1.  The agriculture, forestry, and fisheries sector remains an important pillar of Albania's economy, 
contributing around ALL  441 billion, or 19.9%  of GDP, in  2022, a decline from the 22.6%  the sector 
contributed in  2015. I n 2021, the sector employed around 422,000  workers, or around 34%  of total 
employment, yet a large decline from the roughly 41% it represented in  2015. The agricultural sector 
continues to be dominated by a large number of small farms, with only  14% of far ms having an area 
of more than 2  ha.1 According to some observers, the aggregation of small parcels is hampered by 
weak property rights.2 
4.2.  In total 688,000  ha were used as agricultural land in  2021, with 260,000  ha of those having 
access to irrigation inf rastructure. The area used for forest increased during the review period, 
accounting for 1.1  million  ha in  2021 and that for pasture and other land declining somewhat. 
According to FAOSTAT data, yields generally continued to increase during the review peri od.3 Soil 
erosion continues to pose challenges.  
4.3.  During the review period, the total production in value of agriculture, forestry, and fisheries 
increased from ALL  407 billion in  2016 to ALL  441 billion in  2020 and ALL  474 billion in  2021. 
In volume terms,  the production of field crops grew overall, with cereals broadly unchanged 
(691,000  tonnes in  2021), vegetables growing by around 20% to 1.34  million  tonnes, and forage 
plants growing by around 15% to 7.1  million  tonnes. The production of permanent crops also 
increased, dominated by fruit  trees (287,000  tonnes), grapes (212,000  tonnes), and 
olives  (110,000  tonnes). The production volume of meat and meat products declined marginally 
while the production of fishery products increased by nearly 50%, particula rly as aquaculture 
production more than doubled.4 Wood production remains dominated by firewood 
(nearly  900,000  m3 in 2021).  
4.1.1   Agriculture  
4.4.  Albania is a net importer of agricultural products5, with imports growing from 
EUR 654 million  in 2015 to EUR  1.1 billion in  2022 (14.1% of total imports), and exports growing 
from EUR  112 million in  2015 to EUR  315 million in  2022 (7.7% of total exports). In  2022, more 
than 60%  of overall agricultural imports originated in the EU -27, followed by Serbia  (10.8%) and 
Türkiye (4.6%). The largest import items were waters, cigarettes, wheat and meslin (mostly sourced 
from the Russian  Federation although it accounted for a lower share than in  2015), and bread. 
Exports in  2022 were dominated by medicinal and aromatic plants, tom atoes, various vegetables 
(both fresh and preserved), bread, and some fruit (citrus and melons), with nearly half of agricultural 
exports destined to the EU -27, another 14.5% to Kosovo6, and 8.5% to the United  States. Around 
20% of agricultural exports (e xcluding fish) are classified as re -exports, nearly half of which were 
certain prepared or preserved vegetables destined to the EU -27. 
4.1.1.1   Regulatory framework and policy instruments  
4.5.  The Ministry of Agriculture and Rural Development (MARD) remains in charge of  implementing 
agricultural policies, having changed its name in  2017 when the responsibilities regarding water 
administration moved from the Ministry of Agriculture, Rural Development, and Water Administration 
to the Ministry of Infrastructure and Energy  (MIE). 
4.6.  Agricultural policy aims to primarily support economic activity and living conditions in rural 
areas by supporting agricultural enterprises and operators, and developing infrastructure, while 
 
1 Ministry of Agriculture and Rural Development (2022), Rural Development Programme 2021 -2027. 
Viewed  at: https://bujqesia.gov.al/wp -content/uploads/2022/09/Programi -IPARD -III_2021 -2027_English.pdf . 
2 World Bank (2022), Albania Country Private Sector Diagnostic . 
3 FAOSTAT, Selected Indicators  – Albania . Viewed  at: https://www.fao.org/faostat/en/#country/3 . 
4 Institute of Statisti cs, Agriculture and Fishery . Viewed  at: 
https://www.instat.gov.al/en/themes/agriculture -and-fishery . 
5 Agricultural products are not defined using  the WTO definition due to data available with limited 
disaggregation.  
6 References to Kosovo shall be understood to be in the context of Security Council 
resolution  1244 (1999).  WT/TPR/S /449 • Albania  
 
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  aiming for environmental sustainability. It aims to increa se exports, the production of agricultural 
and fishing products, and domestic value addition. The Strategy of Agriculture, Rural Development 
and Fishing for 2021 -27 spells out objectives in greater detail, focusing on the sustainable 
development of agricul ture and rural areas, fisheries and the blue economy, and includes 
cross-cutting objectives related to capacity, innovation, and digitization.  
4.7.  Law No. 9817/2007 on Agricultural and Rural Development continues to set the framework for 
policy interventions a nd support, establishing a permanent Programme for Agriculture and Rural 
Development, to be funded from the national budget, international donors, and municipal resources 
(Article  6). Specific details (including criteria, supported sectors, and measures) o f the Programme 
are determined by annual decisions of the Council of Ministers, with the procedures and criteria for 
administering the Programme being taken by joint instruction of the Minister of Agriculture and Rural 
Development and the Minister of Finan ce and Economy, who are also in charge of implementing it. 
The Rural Agricultural Development Agency (AZHBR) implements a number of support programmes 
(Section  4.1.1.2 ).7 
4.8.  Over the review period, the Government continued to adapt its regulatory and support 
framework to EU  practices as agreed under Article  95 of the Albania -EU Association Agreement. It 
also continued its reform agenda regarding land ownership with the adoption of Law  No. 20/20208 
and related implementing regulations, as well as a ref orm decentralizing the provision and 
management of irrigation and drainage that was formalized by Law  No. 24/2017 on Irrigation and 
Drainage Administration.  
4.9.  Investments in the agricultural sector (into large agricultural farms) and into the fisheries 
sector can be considered strategic under the 2015  Law on Strategic Investments in the Republic of 
Albania. In such case, investments would be able to access certain investment -facilitating measures, 
benefit from government investments in certain ancillary infra structure, or benefit from certain 
measures to access land ( Section  2.4). Foreigners cannot purchase agricultural land, unless they set 
up a company registered in Albania, but they can lease such land for up to 99  years with the lease 
length depending on t he type of activity.  
4.1.1.2   Domestic support  
4.10.  Domestic support measures in Albania primarily consist of direct payments implemented by 
the AZHBR. The basic criteria, sectors to be supported, and detailed measures implemented under 
the Programme for Agriculture and  Rural Development via the National Agricultural Support Scheme 
(NASS) are defined every year by Council of Ministers Decisions, with the programme administered 
by MARD through the AZHBR. Measures of support funded via the Scheme varied greatly between 
2017 and 20239, with the Law stressing that such payments should not work as price support 
measures. Total support provided between  2017-22 amounted to ALL  14.2 billion.10 Other support 
schemes, such as those relating to primary irrigation, are implemented by MARD.  
4.11.  Since  2021, a fuel subsidy scheme for agricultural mechanization (oil scheme) in support of 
farmers is in place11, providing access to certain amounts of tax -free fuel to farmers active in growing 
certain crops, fruit trees, or vegetables.12 In 2021, ALL  669 million was disbursed to farmers and 
the scheme was integrated into the NASS in  2022 and the envelope increased, with ALL  1.5 billion 
disbursed.13 According t o the authorities, total support provided under the tax -free fuel scheme 
in 2021-23 amounted to ALL  3.9 billion. In August  2022, support measures for the wheat and fishery 
sector were introduced into the NASS ( Table  4.1). 
 
7 Rural Agricultural Development Agency website. Viewed  at: https://azhbr.gov.al/ . 
8 Law on the Termination of Transitional Ownership Processes in the Republic of Albania.  
9 Council of Ministers Decisions  No. 137/2017, No.  72/2018, No.  128/2019, No.  100/2020, 
No. 1102/2020, No.  101/2022, and No.  125/2023.  
10 Information provided by the authorities.  
11 Viewed  at: https://azhbr.gov.al/skema -e-naftes/ . 
12 Council of Ministers Decision  No. 1142/2020.  
13 Prime Ministers' Office, Social Resistance Package, Protection and Support for Citizens and Business.  
Viewed  at: https://kryeministria.al/en/newsroom/paketa -e-rezistences -sociale -mbrojtje -dhe-mbeshtetje -per-
qytetaret -dhe-biznesin/ . WT/TPR/S/ 449 • Albania  
 
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  Table  4.1 Disbursements under the National Agricultural Support Scheme,  2017 -23 
(ALL million)   
2017  2018  2019  2020  2021  2022  2023a 
Livestock  0.3 282.3  494.7  758.7  1,030.8  1,492.1  1,640.0  
Improving plant cultivation 
(including greenhouses)  64.4 137.5  67.6 167.1  82.9 560.3  0 
Input subsidies  0 11.6 0 0 0 181.5  130.0  
Global GAP certification  0 1.0 0 0 0.3 0.4 35.7 
Beekeeping  83.5 70.9 86.4 161.1  220.3  288.9  0 
Fisheries and aquaculture  0.3 10.3 10.0 0 0 352.0  129.4  
Investment subsidies  48.2 1,127.7  138.6  47.8 33.8 213.6  0 
Organic farming  1.2 3.1 0 8.1 11.2 10.8 49.8 
Related interest -rate subsidies  3.8 2.6 1.6 1.0 0.2 0.0 0 
Fuel subsidies  0 0 0 -0 666.8  1,949.0  1,328.0  
TOTAL  202.0  1,647.0  798.8  1,143.7  2,046.0  5,049.0  3,313.0  
a Planned amount s. 
Source:  Information provided by the authorities.  
4.12.  For 2023 , applications under the NASS were accepted between late March and early April, 
with support measures focusing on increasing the competitiveness of livestock and agricultural 
production. Such measures include direct payments for certain livestock (reproduct ive animals) and 
beehives; support to improve plant cultivation including medicinal plants, apples, cherries, walnuts, 
pomegranates, chestnuts, grapevines, citrus, olives, wheat, and strawberries (for planting and solar 
greenhouse construction); certain in put subsidies; up to 50% of the costs for Global GAP 
implementation and certification; support for organic farming; investment subsidies related to 
irrigation, agritourism, greenhouses, and the olive sector; subsidies for fishing boat fuel and the 
improvem ent of fishing infrastructure; fuel subsidies for agricultural mechanization; and certain 
interest rate subsidies.14 
4.13.  As the completion of effective farm register and land parcel registration systems remains 
pending, support measures are administered using an annual application process with beneficiaries 
required to have a valid national tax identification number (NIPT) and being registered as farmers, 
but beneficiaries are not required to meet basic requirements regarding statutory management or 
good agricu ltural and environmental conditions to receive support.15 
4.14.  Through its Drainage and Irrigation programme, MARD also continued to invest in primary 
irrigation and drainage infrastructure, bringing the total area under irrigation to 260,000  ha and that 
with drainage to 270,000  ha, allocating around ALL  25 billion for the period  2016-22. 
4.15.  As part of EU -funded Pre -Accession Assistance, the Instrument for Pre -Accession Assistance 
for Rural Development (IPARD) funds support to the agri -food sector and rural a reas in accession 
countries, and a programme has been operational in Albania since  2018. IPARD complements and 
operates in parallel with the NASS and it is also implemented by the AZHBR. Between 2018 and 
2022, the programme contributed EUR  94.6 million in EU- and government -funded contributions to 
the sector, focusing on investments in physical assets ( Table  4.2).16 
Table  4.2 Support under IPARD  II, 2019 -22 
(ALL million)  
Area of support  2019  2020  2021  2022  
Measure  1 – Investments in physical assets of agricultural 
holding  385.5  1,598.2  1,424.2  1,227.0  
Measure  3 – Investments in physical assets concerning 
processing and marketing of agricultural and fishery 
products  1,292.1  1,377.1  675.1  458.9  
Measure  7 – Farm diversification and business development  196.2  248.6  821.4  594.0  
Measure  9 – Technical assistance  0 0 8.7 9.0 
TOTAL  1,873.8  3,223.9  2,929.4  2,288.9  
of which: government contribution  468.5  806.0  732.3  571.3  
 
14 Council of Ministers Decision  No. 125/2023.  
15 European Commission (2022), Albania  2022 Report , SWD  (2022) 332  final. 
16 IPARD  II followed an earlier project implementing IPARD -like measures with around EUR  5.2 million 
contract ed for implementation until 2017.  WT/TPR/S /449 • Albania  
 
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  Source:  IPARD agency.  
4.16.  For the period 2021 -27, the total planned funding envelope under IPARD  III amounts to 
EUR 146.4  million, of which EUR  34.4 million will come from the national budget, with 
implementation modalities unchanged and the programme starting once IPARD  II closes. As an 
EU programme, IPARD sets the framework for eligible support, identifying 13  measures aligned to 
the European  Union's Common Agricultural Policy. The Albanian programme includes support in nine 
of these measures, with more than half of total support fore seen for investments in physical assets 
of agricultural holdings as well as those concerning processing and marketing of agricultural and 
fishery products. Other important areas of support are for farm diversification and business 
development and investmen ts in rural and public infrastructure.17 This represents a significant 
increase in the number of types of measures included under the Albanian programme under 
IPARD  III, as IPARD  II provided support in only four areas ( Table  4.3). 
Table  4.3 Planned support under IPARD  III, 2021 -27 
(ALL million)  
Area of support  2021  2022  2023  2024  2025  2026  2027  
Measure  1 – Investments in physical assets of 
agricultural holding  472 629 472 551 803 983 1,043  
Measure  3 – Investments in physical assets 
concerning processing and marketing of 
agricultural and fishery products  472 472 617 610 739 960 907 
Measure  4 – Agri-environment climate and 
organic farming  0 0 13 20 31 41 193 
Measure  5 – Implementation of local development 
strategies  – LEADER approach  0 0 142 142 142 142 - 
Measure  6 – Implementation in rural public 
infrastructure  0 0 0 315 393 551 629 
Measure  7 – Farm diversification and business 
development  301 445 325 548 546 560 629 
Measure  9 – Technical assistance  12 24 53 53 53 41 29 
Measure  10 – Advisory services  0 0 35 47 47 100 112 
Measure  11 – Establishment and protection of 
forestry  0 0 167 167 167 167 167 
TOTAL  1,257  1,570  1,824  2,451  2,921  3,544  3,709  
of which: government contribution  313 390 408 563 679 830 877 
Source:  Information provided by the authorities.  
4.17.  An initiative designed with support from the European Bank for Reconstruction and 
Development (EBRD) aims to improve access to financing for the Albanian agri -business and tourism 
sector via commercial banks and non -banking microfinance institutions. Implemented by the EBRD, 
it does so by working with commercial banks via,  inter alia, supporting risk -sharing agreements and 
providing incentives to p rovide loans to the agri -business sector.18 The total envelope under this 
programme, also using funds from the national budget, is  EUR 180 million for the period until  2025, 
of which EUR  150 million is directed to the agricultural sector. A separate Initia tive for the Recovery, 
Growth and Start -up of SMEs, which agricultural producers also have access to, provides guarantees 
and technical assistance to SMEs generally.  
4.18.  A VAT -related reform in  2021 introducing a reduced VAT rate of 10% applying to certain 
agricultural inputs instead of the previous VAT exemption applying to such inputs. This effectively 
ended the compensation scheme for agricultural producers not participating in the regular 
VAT scheme by setting the compensation rate, formerly paid by buyers to agricultural producers, 
from 6% to 0%.19 This rate had already been reduced in  2018 from 20% to 6% ( Section  3.3.1 ). 
4.1.1.3   Border measures  
4.19.  Average applied MFN tariffs on agricultural goods (WTO definition) are 8.7%, more than three 
times higher than those for non-agricultural products, while bound rates are nearly twice as high 
 
17 Ministry of Agriculture and Rural Development (2022), IPARD  III Programme 2021 -2027 of the 
Republic of Albania . Viewed  at: https://agriculture.ec.europa.eu/system/files/2023 -03/ipard -III-programme -
albania -2021-27_en.pdf . 
18 Albania Agriculture and Tourism Support Facility. Viewed  at: https://aatsf.com.al/ . 
19 Law No. 111/2021, amending Law  No. 92/2014.  WT/TPR/S/ 449 • Albania  
 
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  at 10% (Section  3.1.3). Applied preferential duties under Albania's FTAs also remain higher for 
agricultural products compared to those for other products, and the share of duty -free tar iff lines is 
more limited for agricultural products compared to non -agricultural products (Table  3.2). 
4.20.  Albania applies a number of preferential tariff rate quotas (TRQs) of 0%. TRQs applied under 
the RTAs with the European  Union and the United  Kingdom affe ct nine  agricultural tariff lines for 
milk and cream, wheat and meslin, maize, sparkling wine, and tomato ketchup or sauce, while TRQs 
under the RTA with Türkiye affect products in 27  tariff headings including some cheese, honey, fruits 
and vegetables (inc luding some in processed form), sugar, chocolate, and ice cream. Information 
on TRQs is updated daily on the customs website.20 
4.21.  Accompanying the Albania -EFTA FTA, Albania has ratified Agreements on Agriculture with 
Switzerland, Liechtenstein, Norway, and Iceland. They contain tariff concessions and foresee further 
liberalization.21 
4.1.1.4   Export subsidies  
4.22.  Albania notified the WTO that it did not grant export subsidies between 2016 and 2021.22 
4.1.1.5   WTO notifications  
4.23.  The most recent notification to the WTO o n agriculture domestic support is for calendar 
year 2017.23 According to the notification, Albania provided total AMS (including de minimis ) of 
ALL 196 million, focusing on support to beekeeping and non -product specific support, as well as 
Green Box suppor t of ALL  1 billion, primarily for inspection and infrastructural services. The notified 
level of support was lower than in  2013, the year for which the previous notification was submitted, 
when total AMS (including de minimis ) was ALL  804 million, focusing  on support to beekeeping and 
non-product specific support, as well as Green Box support of around ALL  841 million. The 
authorities indicate that they are facing challenges in collecting relevant data and preparing 
DS:1 notifications and are planning to re quest technical assistance in this area from the 
WTO Secretariat.  
4.1.2   Fisheries  
4.24.  According to the Strategy of Agriculture, Rural Development and Fishing  2021-27, a key 
objective is to formalize and expand the fisheries sector, while ensuring its sustainability. Fisheries 
policy in Albania continues to be regulated by Law  No. 64/2012 on Fishing, and focuses on fisheries 
management, with particular focus on the setting of fishing quotas, fleet capacity management, 
market and aquaculture regulations,  and support for small -scale fisheries and coastal communities. 
The Law was amended a few times during the review period, inter alia, by introducing a differential 
treatment of small and artisanal coastal fishing, strengthening resource protection and surv eillance 
by fishing management organizations, and the registration of fishing boats to limit the total number 
of vessels other than small -scale fishing vessels. According to the authorities, there were 
754 licensed maritime fishing vessels in June  2023, 23 0 of which were large vessels.  
4.25.  The NASS has also covered support to the fisheries sector since  2022. According to the Law 
on Fishing, such support should not include capacity -enhancing support, and includes measures to 
adapt the capacity of fishing fleets,  as well as investments regarding safety, to cushion the effects 
of fishing bans; support small, artisanal coastal fishing; and support processing and trading of 
inland -water fish. It also includes the provision of public goods relating to sustainability a nd 
environmental protection, or investments in fishery infrastructure. Reflecting developments at the 
European  Union, certain support to enhance energy efficiency (while reducing engine capacity) and 
certain fuel subsidies in response to the energy crisis and the war in Ukraine were provided in  2022. 
Overall support to the fisheries sector during the period 2016 -22 amounted to ALL  200 million, 
ALL 180 million of which in  2022 for fuel subsidies for fishing vessels ( Table  4.1). 
 
20 Customs, Preferential Tariffs and Tariff Quotas . Viewed  at: 
https://www.dogana.gov.al/d/169/182/249/266/tarifat -preferentiale -dhe-kuotat -tarifore . 
21 Law No. 10288 /2010.  
22 WTO documents  G/AG/N/ALB/14 -18, 2 November  2020; and  G/AG/N/ALB/19, 2  May 2022.  
23 WTO document  G/AG/N/ALB/8, 16  October  2018.  WT/TPR/S /449 • Albania  
 
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  4.26.  Total fish production increase d during the review period and reached 18,500  tonnes in  2021, 
more than half of which originated in inland waterways or aquaculture. In terms of tonnage, various 
carp species accounted for more than 50% of inland water catches, while anchovies, rose shrimp , 
and hake were the most important marine and coastal water catches24, with the total market value 
of fish produced in Albania estimated at ALL  8.2 billion in  2022, according to the authorities.  
4.27.  Albania is a net exporter of fish and fish products with the European  Union -27 the main trading 
partner both for exports and imports, accounting for around 80% of trade overall. On increasing 
trends since  2015, exports were valued at EUR  133 million in  2022, and imports at EUR  131 million. 
According to government st atistics, exports are near -exclusively destined for the EU -27, with more 
than 80% of fish exports classified as re -exports, i.e.  fish (products) imported and exported after 
processing (in particular cold -water shrimp and prawns, as well as anchovies). Nati onal exports 
primarily consist of certain fresh or chilled fish. The origin of fish imports is comparably more 
diversified geographically, with the largest import items being crustaceans (mostly from 
Latin America) and fish that is dried, salted, or smoked , or in brine, from the European  Union.  
4.28.  Foreigners cannot own more than 49% of fishing companies that have fishing rights, and fish 
catch permits are issued only to vessels flying the Albanian flag. As for large agriculture projects, 
investments into the f isheries sector can be considered strategic under the 2015 Law on 
Strategic  Investments ( Section  2.4). 
4.29.  The Agreement on Fisheries Subsidies was approved by Parliament in June  202325 and Albania 
expects to deposit the instrument of acceptance soon.  
4.2  Mining a nd energy  
4.2.1   Mining  
4.30.  Albania is rich in mineral resources , and mining and quarrying is traditionally a relatively 
significant economic activity although its share declined from 3.7% of GVA in 2015 to 2.5% in  2021 
(Section  1.2). The COVID -19 pandemic significan tly affected the sector. The sector consists of 
slightly less than 700  companies, an increase from around 500 in 2016, while employment26 declined 
from more than 11,000 in 2016 to 9,355 in 2021. Mineral exports accounted for 22.2% of total 
exports in 2022,  higher than during most of the review period, with crude oil accounting for roughly 
one third of these (7.2% of total).  
4.31.  The most important production volumes are for limestone, crude oil, clay, chrome, copper, 
coal, and ferro -nickel. Exports primarily con sist of crude oil, increasing from EUR  141 million in 2016 
to EUR  295 million in 2022 ; ferrochrome27, which increased from EUR  50 million in 2016 to 
EUR 258 million in 2022 ; chromium ores and concentrates , which increased from  EUR 84 million in 
2016 to EUR 98 million in 2022 ; ferrous waste and scrap (EUR  35 million in 2022) ; copper ores and 
concentrates (EUR  30 million in 2022) ; copper waste and scrap ; and aluminium waste and scrap.  
4.32.  Since 2013, Albania has adhered to the Extractive Industry Transparency Initiative (EITI), a 
global initiative that seeks to improve the governance of the extractive sector.  
4.2.1.1   Oil and gas  
4.33.  The authorities in charge of the sector are the MIE and the two  agencies placed under it, the 
National Agency of Natural Resource s (Agjencia Kombetare e Burimve Natyrore (AKBN )) and the 
Albanian Geological Service. The Petroleum Law28 establishes state oil or gas ownership for all  
natural gas and petroleum deposits within Albania's jurisdiction. In turn , the MIE may confer to 
intere sted parties rights to explore, develop , and produce oil and gas for a limited period and for a 
 
24 Institute of Statistics, Agriculture and Fisheries . Viewed  at: 
https://www.instat.gov.al/en/themes/agriculture -and-fishery . 
25 Law No. 42/2023.  
26 Figures include solid minerals mining and quarrying and oil and gas exploration and exploitation, but 
excludes refining and processing of oil, gas and minerals.  
27 HS 720241/49.  
28 Petroleum Law  (exploration and production)  No. 7746/1993.  WT/TPR/S/ 449 • Albania  
 
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  specific zone by means of a so -called "petroleum  agreement" , which may take the form of a 
production sharing agreement or any other form so long as it does not violate the Petroleum Law. 
4.34.  The duration of an exploration permit is five years and may under specific circumstances 
reach seven  years. After a discovery, the contractor may ask for an additional three  years to 
evaluate it. The duration of the petroleum agr eement for development and production is up to 
25 years in accordance with a development plan approved by the MIE. It is extendable for five  years. 
In all instances, the petroleum agreements signed for development and production have taken the 
form of a pr oduction sharing agreement, i.e.  an agreement that provides the division of the 
remaining amount of hydrocarbons produced in the contract zone ( "profit oil ") after the recovery of 
petroleum costs and payment of the royalty taxes by the contractor ( "cost oi l"). 
4.35.  There were two main regulatory development during the period under review. The first was 
the limitation in 2017 of the duration of the fiscal stability clauses negotiated as part of the petroleum 
agreements to 12  years by Law  No. 6/2017 amending the Petroleum Law. The second was 
Fiscal  Law No. 153/2020 , which stipulates that oil companies will pay profit taxes from the start of 
the production phase and where at least 85% of the revenue will be allocated for cost recovery 
purpose s. 
4.36.  Four companies have signed production sharing agreements with the Government: San Leon 
Energy  Plc in 2004, Shell Upstream Albania  BV in 2007, Shell Albania Block  4 BV in 2017 , and 
Eni Albania  BV in 2019 . All are presently conducting exploration activities.  
4.37.  In 2022, there were seven companies engaged in crude oil extraction : Bankers Petroleum 
Albania and Sherwood from China ; Terra Oil Swiss from Switzerland ; and  Anio Oil and Gas, Delvina 
Gas Company, EDG Natyral Gas, and Fin Pek from Albania. These companies inte ract with Albpetrol, 
the 100% state -owned company that is active in the exploration, development , and production of 
oil and gas. Albpetrol is the primary licensee in all oil fields discovered up until 1993 but sub -granted 
its rights for four  oil fields and  three  gas fields to private companies. This is legally done through the 
so-called "Albpetrol  Agreement" , which is a specific petroleum agreement that grants to Albpetrol, 
in addition to its rights to conduct exploration development and production activiti es, the right to 
transfer any or all the rights it is entitled to for a specific zone to another legal entity . 
4.38.  The main producer of oil is the Chinese company Bankers Petroleum , which exploits the oil 
field of Patos Marinza. It accounted in 2022 for 550,00 0 tonnes of the national total of 
657,400  tonnes produced , i.e. 85% of production, while Albpetrol, which has to maintain for safety 
reasons the oil and gas fields not exploited by private companies, accounted for about 10% of 
production The other six  comp anies holding a production licence received their licences between 
2004 and 2013 , and all run for 25  years. Some of them were transferred during the period under 
review. Oil produced in the country is mostly exported, to be refined abroad , notably to Spain  and 
Italy. Its heavy density makes it particularly suitable for the production of bitumen.  
4.39.  The National Energy Strategy  2018-2030, adopted by Council of Ministers Decision  
No. 480/2018 , estimates the geological oil reserves at around 437  million  tonnes. More than 77% 
of the geological reserves  are located in sandy deposits. To date , about 50  million  tonnes have been 
extracted and about 386  million  tonnes are still underground. Sandy depo sits are not economically 
exploitable under present market conditions.  
4.40.  The Government participates  in the sale of crude oil via Albpetrol , which proceeds through 
auctions.  It is also active in the transport of crude oil through its SOE. Bankers Petroleum, the main 
oil producer , freely selects its carriers. The transport of refined petroleum is subject to licences 
delivered based on technical and financial capacities criteri a. 
4.41.  Three refineries operate in Albania, in Elbasan and Fier.29 In addition, in  2016 the Government 
allocated two new licences for oil refining to RBH BELINE and AM -OIL, for  30 years with future 
facilities of , respectively , 500 tonnes  per 24 hours and 600  tonnes  for 24 hours. All of these facilities 
have a relatively small production capacity and are not able to produce gasoline, diesel , or kerosene. 
 
29 In 2016 Armo reached an agreement with its creditors to transfer its two refineries to Ionian Refining 
and Trading Company  (IRTC) and in 2018, the refinery of Fier was sold to local investors for EUR  5 million.  WT/TPR/S /449 • Albania  
 
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  They produce only intermediary products that are subsequently reprocessed abroad, increasing from 
184 ktoes i n 2016 to 513  ktoes  in 2017, and then declining to 165  ktoes in 2021.  
4.42.  Wholesale and retail distribution of refined products is open to the private sector and foreign 
operators. Licences for wholesale trade are delivered by the MIE, and by local authorities for retail  
trade. In both instances , the granting of licences is based on technical and financial capabilities and 
without preset quantitative restrictions. Wholesale storage facilities must be built in areas foreseen 
by a nationa l plan (essentially , Fier and Porto Romano).  
4.43.  Regarding storage, La Petrolifera Italo -Albanese operates the Vlora sea terminal for crude oil 
based on two  concessions granted in 2004 : a BOO (Build Operate Own) , giving it the land and the 
storage facility ; and a BOT (Build Operate Transfer) of 30  years renewable for another 30  years , on 
the related port infrastructure. The terminal of Porto Romano in Durrës has facilities for the storage 
of crude oil and refined imported and exported products.  
4.44.  Albania's import s of refined oil products increased from EUR  224 million in 2016 to 
EUR 619 million in 2022, with the Kingdom  of Saudi  Arabia becoming a major supplier during the 
review period (accounting for nearly 50% in 2022 after having accounted for a minimal share 
until 2020), while the importance of Italy as a supplier notably declined. Other important sources 
are Türkiye, Israel, Romania, Croatia, and Greece. Albania exports significant amounts of crude oil 
(Section  4.2.1.1 ) and limited amounts of refined oil.  
Gas 
4.45.  Gas reserves in natural gas fields and oil fields are estimated at 3  billion  m3 and 
630 million  m3, respectively . Some are in the form of gas dissolved in oil or condensed in it , and 
some are in the form of free gas in gas deposits. While notable, gas rese rves are not exploited on 
their own, as they are "accompanying gas", i.e. gas found together with oil. The infrastructure to 
exploit and distribute it only exists so far in the Fier region.  
4.46.  The Trans Adriatic Pipeline (TAP) , which transports gas from Azerb aijan to Europe , transits 
Albania and started commercial operations in November  2020. Efforts to interconnect the TAP with 
the planned Ionian Adriatic Pipeline (IAP), a 515  km pipeline of 5  billion  m3 capacity aiming to 
distribute gas in Albania, Bosnia and Herzegovina, Croatia, and Montenegro, are ongoing. In 
April 2016, TAP was certified jointly by the n ational regulatory authorities of Albania ( the Energy 
Regulatory Entity ( ERE)), Greece (RAE) , and Italy (AEEGSI)  based on the independent transmission 
operator (ITO) model, part of the European  Union's Third Energy Package, taking into consideration 
the opinions issued by the European  Commission and the Energy Community Secretariat earlier 
in 2016.  
4.47.  Law No. 102/2015 on the Gas Sector created Albgaz, a spin -off from the former gas activities 
of Albpetrol , to act as the combined operator of the transmission and distribution of gas in Albania . 
Albgaz was certified by the ERE in November  2017 under the unbundling ownership model. In its 
2022 Implementation Report on Albania30, the Energy Community Secretariat considers that all of 
the conditions set in the Albgaz certification decision are not yet met , such as the complete transfer 
of competencies ov er investment decisions to the ministry exercising control over Albgaz  (Ministry 
is Ministry of Infrastructure and Energy, MIE) . 
4.2.1.2   Solid minerals  
4.48.  The State has the inalienable right of ownership of solid mineral resources , but the exploration 
and exploitatio n of mineral resources are purely private, the State being in the final process of 
liquidating its remaining state-owned companies in the sector. Private companies pay a "mining fee" 
to the State, i.e.  a tax based on a percentage of the value of the mineral mined to compensate for 
the decrease of the mineral reserves. There too, the authorities in charge of the sector are the MIE 
and the two agencies placed under it, the AKBN and the Albanian Geological Service.  
 
30 Energy Community, Albania  – Annual Implementation Report  2022. Viewed  at: https://www.energy -
comm unity.org/implementation/report/Albania.html .  WT/TPR/S/ 449 • Albania  
 
- 66 - 
 
  4.49.  In 2023 , 436 mining  companies were active in Albania , of which 17  are foreign  owned , and 
hold a total of 553  exploitation permits (251  permits for chrome, 158  permits for limestone, 54  for 
decorative stones, 31  for iron -nickel and nickel -silicate, 12  for sandstone and gravel , and 47  for 
other m inerals).  
4.50.  The main destinations for mineral exports in 2023 are Europe  (65%) for ferro -chrome , of 
which 27% to Italy; Europe ( 100%, essentially North  Macedonia) for iron ore ; China  (55%) and 
Bulgaria  (45%) for copper ore ; China  (69%), Sweden  (17%), and Swi tzerland  (7%) for chrome  ore; 
and Kosovo31 (100%) for ferro -nickel ore.  
4.51.  Reserves for these minerals stood in 2023 at 31  million  tonnes for chrome  ore, 
40 million  tonnes for copper  ore, 247  million  tonnes for iron  nickel  ore, 104  million  tonnes for 
nickel -silicate  ore, and 3.9  million  tonnes for iron  ore. Ten companies hold research permits in  2023.  
4.52.  The mining regime distinguishes four regimes for four kinds of minerals: (i)  metals, 
non-metals , coal, and bitumen; (ii)  minerals used for construction; (iii)  precious and half -precious 
minerals; and (iv)  radioactive minerals.  During the period under review , licences delivered only 
concerned the first two  categories  (Table  4.4). Production licences give the licensee the exclusive 
right to develop the needed infrastructure, and to extract, own , and sell the production in the 
licensed area. The MIE can also grant licences for the processing of mineral wastes.  
Table  4.4 Main features of mining licences,  2022  
 Metals, non -metals, coal , and bitumen  Minerals used for construction  
Exploration licence term  3 years (extendable by 1  year)  1 year 
Maximum exploration area  No more than 100 km2 No more than 10  km2 
Production licence term  25 years (extendable by 10  years)  25 years (extendable by 10  years)  
Source:  Deloitte (2020), Extractive Industries Transparency Initiative in Albania, Report for the Years 2017 
and 2018 . 
4.53.  The State may also grant to legal domestic or foreign entities mining rights in accordance 
with the provisions of the Law on Concessions , implying heavy downstrea m investments in refining 
and processing facilities. Those mining rights are also subject to the Mining Law. Three  mining 
companies – Albchrome (2001 for 40  years), Beralb (2002 for 40  years), and Ilyria Minerals 
Company (2013 for 35  years) – benefit from nine such concessions. All of these companies are 
foreign owned (initially by Italian and Austrian interest s, now mostly by Turkish interests). These 
concessions can be legally extended up to 99  years. From an operational point of view , these 
concessions are of a ROT (rehabilitate, operate , and transfer) type.  
4.54.  The m ining and energy  sectors are  defined as strategic sectors of the economy by the Law on 
Strategic Investments of 2015 ( Section  2.4). Strategic i nvestors who meet the thresholds set by  the 
Law (EUR  30 million for the "assisted procedure" , and EUR  60 million of the "special procedure") 
benefit from a quick processing procedure via the Albanian Investment Development Agency , which 
serves as a one-stop shop.  
4.55.  During the period under review , the Government adopted several technical regulatory 
measures , notably on safety, qualifications , and procedures for the extension of permits. In 
particular , Council of Ministers Decision No. 357/2022, complementing the Mining Law, has allowed 
the transfer  of mining licences granted through tendering procedures after five  years, thereby 
encouraging new entrants.  
4.56.  The Government encourages not only the development of mining per se but also the local 
transformation of the minerals. During the period under review , three new ferrochrome processing 
plants and one copper processing plant were created , and efforts are now made to encourage 
investments in ferro -nickel and nickel -silicate processing plants. The main tool used by the 
Government to encourage these downstream investments is a rebate of the mining fee for processed 
minerals as compared to the rates applicable to raw metal ores. These rebates vary by year and 
usually result in s ignificantly lower rates (Table  4.5). 
 
31 References to Kosovo shall be understood to be in the context of Security  Council 
resolution  1244 (1999).  WT/TPR/S /449 • Albania  
 
- 67 - 
 
  Table  4.5 Mining fee rates applicable to raw metal ores and to processed 
minerals,  2018 -24 
 2018  2019  2020  2021  2022  2023  2024  
Rates for raw metal ores  6% 7% 8% 9% 9% 9% 9% 
Rates for processed minerals  .. 3% 3% 0% 0% 0% 3% 
.. Not available . 
Source:  Information provided by the authorities.  
4.57.  To foster the development of the sector, Albania devised a long -term Mining 
Strategy  (2010 -2025) , which is updated every three  years by an action plan adopted by the Council 
of Ministers. The latest action plan was adopted by Council of Ministers  Decision  No. 380/2022 and 
covers the 2022-24 period , and its objective is to create " [a] dynamic, sustaina ble, growing  and 
harmonious Albanian mining industry that contributes [to] the wealth of the nation and well -being 
of its people  by offering more and better employment opportunities , ensuring environment 
protection and preservation, and meeting all EU  integration standards".32 In that respect , the Mining 
Law was aligned during the period under review with the relevant EU  acquis , 
EU directive  2006/21/EC , and the transposition of the latest consolidated version of this directive 
dated 7  August  2009 is ongoing . 
4.2.2   Energy  
4.58.  The share of oil remains largely dominant but notably declined (from 57.8% to 53%) between 
2015 and 2020  (Chart  4.1). The share of hydropower slightly diminished (from 24.4% to 23.1%) , 
but this evolution might not be statistically meaningful in view of the variability of this resource year 
on year and the effects of the COVID -19 pandemic on energy use.33 The share of coal notably 
progressed (from  4.5% to  7.7%), some of which is imported , as well as that of natural 
gas (from  1.3% to 2.1%). The share of biofuels and waste progressed from an already significant 
base (from 11.3% to 13.33%) and so has the share of solar and wind but from a small base in this 
case (from 0.6% to 0.8%) and remai ns marginal for the time being.  
Chart  4.1 Total energy supply (TES) by source,  2015 and 2020  
 
Source:  IEA, Albania . Viewed  at: https://www.iea .org/countries/albania#overview . 
4.59.  The overall energy policy of Albania is determined by the National Energy Strategy  (2018 -30), 
approved by Council of Ministers Decision  No. 480/2018 and the 2021 National Plan for Energy and 
 
32 Albania Council of Ministers (2016), National Strategy for Development and Integration, 2015 -2020. 
Viewed  at: https://www.dap.gov.al/images/DokumentaStrategjik/NSDI_2015 -2020.pdf . 
33 Latest available data are for 2020.  
Coal
4.5%Natural gas
1.3%
Hydro
24.4%
Biofuels and 
waste
11.3%Oil
57.8%Wind, solar, etc.
0.6%Coal
7.7%Natural 
gas
2.1%
Hydro
23.1%
Biofuels and 
waste
13.3%Oil
53.0%Wind, 
solar, 
etc.
0.8%Chart 4.[ALB]  Total energy supply (TES) by source
Total: 86,903 TJTotal: 82,340 TJ
2015 2020
Source: IEA. Viewed at: https://www.iea.org/countries/albania#overview.WT/TPR/S/ 449 • Albania  
 
- 68 - 
 
  Climate  (2021 -30).34 These two documents define the objectives and goals for increasing the 
security of energy supply through (i)  diversif ying energy production by creating a supportive 
domestic energy  market; (ii) reducing the level of technical and non -technical energy losses in the 
network; (iii)  increasing energy efficiency; (iv)  increasing the share of energy from renewable 
sources; (v)  reducing the amount of imported energy; (vi)  improving energy intensity ; and 
(vii) reducing greenhouse gas (GHG) emissions.  
4.60.  The M IE is the authority in charge of these policies. It is assisted by the E RE, an independent 
regulatory agency established in 2015 ; the Energy Efficiency Agency created in 2015 ; and the 
mineral resour ces agency (AKBN) , which plays a role in the authorization process for solar and wind 
power  plants.  
4.2.2.1   Electricity and renewable s 
4.61.  In the specific case of Albania , these two usually distinct subjects can be discussed together 
because (i)  renewable energies (ex cept for biofuels and waste) are used only for electricity 
generation ; and (ii) the electricity production mix during the period under review was uniquely 
composed of renewable energies , dominantly by hydroelectricity and marginally towards the end of 
the period by photovoltaic (PV) energy ( Chart  4.2). This is not true , however , of electricity imports , 
which may have a partially thermal origin. The level of the hydro production is highly variable 
depending on the hydrological conditions , which have become more uncertain with climate change, 
with total net domestic production of 8,962  GWh in 2021 and 7,002  GWh in 2022.  
Chart  4.2 Electricity generation by source , 2015 -22 
(GWh)  
 
Source:  INSTAT,  Energy . Viewed  at: https://www.instat.gov.al/en/themes/environment -and-energy/energy/ . 
4.62.  The period under review saw a complete change of th e institutional landscape of electricity in 
Albania and of the relationship between its different – and sometimes new  – actors as a consequence 
of several regulatory evolutions, namely:  
 
• the unbundling of energy operators and the liberalization of the mark et entailed by the 
transposition of the E uropean  Union's  Third Energy Package;  
• the creation of two categories of renewable energy producers (priority producers and self -
producers) as a consequence of the renewable energy law of 2017;  
• the creation of a powe r exchange (ALPEX) and of new balancing rules; and  
• the consequences of the proclamation of the energy state of emergency in 2020.  
 
34 Approved by Council of Ministers Decision  No. 872/2021. Such nati onal plan is a  mandatory obligation 
under the Energy Community Treaty, designed to prepare the transposition of the EU  energy  acquis  by 
EU candidate countries.  
5,866 7,136 
4,525 8,552 
5,186 
5,281 8,922 
6,951 
0.0 0.0 0.0 0.0 22.2 32.3 40.8 51.3
01,0002,0003,0004,0005,0006,0007,0008,0009,00010,000
2015 2016 2017 2018 2019 2020 2021 2022Hydro Solar PVChart 4.[ALB]  Electricity generation by source
(GWh)
Source: INSTAT, Energy. Viewed at: https://www.instat.gov.al/en/themes/environment -and-energy/energy/WT/TPR/S /449 • Albania  
 
- 69 - 
 
  4.63.  The production of electricity in 2022 is ensured by four types of producers:  state-owned 
companies  (KESH and Lanabregas ), independent power producers  (IPPs) , priority producers , and 
self-producers.  
4.64.  KESH is a 100% state-owned company and the former monopoly. In 2018 , its ownership was 
transferred to the MIE and hence unbundled from that of the transmission company (TSO) , which is 
owned by the Ministry of Finance  and Economy . It manages three large hydropower plants on the 
Drin River, has a capacity of 1448  MW (52% of the total capacity) , and a production of 
3,859,721  MWh (55 .1% of the total production) in 2022. Lanabregas  is also a 100% state-owned 
company, owned by the MIE, but of a much smaller size. It manages one hydropower plant in the 
Skanderbeg mountains for a capacity of 5  MW (0.2%  of the total capacity) and a production of 
25,423  MWh (or 0.36% of the total product ion) in 2022.  
4.65.  IPPs are private hydropower producers (HPP s) that exploit hydropower  plants in the form of 
concessions or under 2  MW of authorizations. This category has existed since 2003. Four companies 
are licensed as IPPs, three of which  are foreign -owne d35, managing a total of nine plants for an 
installed capacity of 438  MW (i.e.  15.9% of the total capacity) and a production of 1,159,000  MWh 
(i.e. 16.55% of the total production) in 2022.  
4.66.  Priority producers are renewable energy producers of a small capaci ty (i.e.  under 15  MW for 
hydro, under 2  MW for PV, and under 3  MW for wind) that benefit from a support scheme by the 
State , which buys the totality of their production at guaranteed prices set annually by the 
independent regulator ERE (so -called Purchas e Power Agreement (PPA)). 
4.67.  Some of the priority producers (33  licensed companies operating 48  plants, accounting for a 
capacity of 380  MW and a production of 1,130,403  MW) are linked to the high voltage transmission 
grid of TSO, the transmission operator , while others (133  licensed companies operating 171  plants, 
accounting for a capacity of 325  MW and a production of 803,324  MW) are linked to the low voltage 
distribution network of OSSH, the unbundled distribution operator. In total, priority producers 
accoun ted for 25.6% of the total capacity and 28 .33% of the total production in 2022. Most are 
HPPs, the capacity and production of PV (23 MW and 50,093  MWh) being still marginal and that of 
wind being non-existent for the time being.  
4.68.  The last category of producers , self-producers, are households or companies having equipped 
their premises with PV panels for their own needs and having surplus capacity to sell to the 
distribution grid. This category was created in early 2020 on the basis of a "monthly meteri ng 
scheme"36, but the corresponding price/feed -in tariff was never set. In May  2023, the scheme was 
revised and replaced by a "net billing scheme"37 that will be enforced as of January  2024. ERE is 
presently working on the methodology to determine the pric e that will be paid to self -producers. In 
just three  years, self -producers installed 150  MW of capacity , i.e. 5.5% of the total capacity. There 
are not yet any publicly available figures on their production.  
4.69.  Transmission is ensured by TSO, whose shares, as  mentioned above, were transferred to the 
Ministry of Finance and Economy to unbundle it from KESH and from the distribution operator. TSO 
is also in charge of the implementation of the new balancing rules adopted in 2020 by the regulator 
ERE.38 These rule s require TSO to secure balancing services through a competitive market -based 
process. Participants can now offer balancing services and may hedge their own balancing 
responsibility by creating or joining balance groups. This will be important in particula r for 
independent HPPs, which became responsible parties for their imbalances with the creation of the 
balancing market. The Government  hopes that a balance group that integrates small HPPs in Albania 
will help ensuring efficient integration of these produ cers into the electricity market and allow them 
to optimize balancing costs.  
 
35 Statkraft  AS, Ayen AS Energji Sha, and Kurum International.  
36 MIE Guideline No. 3 of 20  June 2019 on Approval of the Facilitated Procedure of Authorisation for 
Connection to the Distribution System of Small Photovoltaic Self -Producers.  
37 Law No. 24/2023 on Promoting the Use of Renewable Resources , transposing 
Directive  (EU) 2018/2 001. 
38 ERE Decision  No. 106 of 2  July 2020.  WT/TPR/S/ 449 • Albania  
 
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  4.70.  At the beginning of the period under review , the distribution network was operated by the 
state-owned company OSHEE. The Energy Community opened a case in January  201839 against 
Albania as it judged the unbundling of the distribution system operator insufficient. OSHEE was 
legally unbundled in 201940 into three companies: FSHU, the universal supplier ; FTL, the "free trade 
supplier/provider of last resort"; and DSO/OSSH, the operator of the distribution grid itself. The case 
was closed on 18  April 2023 by the Energy Community secretariat on the ground s that Albania had 
completed the required legal unbundling  and had made substantial progress in functional 
unbundling , notably by adopting a compliance program me and appointing a compliance officer.  
4.71.  A new power exchange , ALPEX, was founded by the transmission operator of Albania (TSO) 
and the transmission operato r of Kosovo (KOSTT). Its main seat is in Tirana. It operates the 
day-ahead market, coupling Albania and Kosovo. ALPEX  started its operations on a trial basis in 
November  2022, extended them in February  2023 to intraday market and services , and was fully 
operational in April  2023.  Various actors are members of ALPEX : KESH, FTL, OSSH, IPPs, and 
electricity traders.  
4.72.  The somewhat complex relationship between those various actors and final consumers is 
partially determined by the calendar of liberalization plann ed by the 2015  Law, which occurred 
during the period under review, but with some delays, further affected by the energy crisis.  
4.73.  Liberalization of the electricity market has been completed for nearly all consumers, albeit for 
some a transition period of a maximum of two years continues to apply ( Table  4.6). Customers with 
a voltage down to 6  kV are not eligible anymore for universal services and regulated prices. They 
must buy their electricity on the free market from IPPs or on ALPEX. However , as of the dat e of 
liberalization, if they could not find a free -market supplier or were not willing to find one right away, 
they benefit from a transitory period of a maximum of two years where they can be supplied by FTL , 
which plays the role of supplier of last resort. This transitory period expired in January  2022 for 
customers with 35  KV voltage and above and will expire in January  2024 for customers between 
6 kV and 35  KV. FTL can sell it s excess on ALPEX  at market prices. Consumers with 0 .4 kV can 
remain fore ver with FSHU at regulated prices, but they have the choice, if they so wish , to move to 
the free market. In practice , very few have done so.  
Table  4.6 Planned and effective calendar of the liberalization of t he electricity market  
Market type of customer  Initial calendar of 
liberalization  Effective calendar  
of liberalization  
With 110  kV voltage and above as well as 
any other customer with annual electricity 
consumption exceeding 50  million  kWh, 
regardless of voltage  April 2015 April 2015 
With 35  kV voltage and above  30 June 2016 March  2020 with optional 2 -year 
transitory period with FTL as supplier 
of last resort  
With 20  kV and above  31 December  2016 1 January  2022 with optional 2 -year 
transitory period with FTL as supplier 
of last resort  
With 16  KV, 10  kV, and 6  kV 31 December  2017 1 January  2022 with optional 2 -year 
transitory period with FTL as supplier 
of last resort  
0.4 kV No compulsory date  No compulsory date  
Source:  Compiled by  the WTO Secretariat , based on i nformation provided by the authorities.  
4.74.  FTL buys its electricity for the State's account from the priority producers at regulated and 
supported prices. From 2018 to 2020, FTL could buy electricity to supply FSHU but since th e 
proclamation of the energy state of emergency in 2020, KESH, the state-owned producer , has the 
obligation to provide the universal supplier with all the electricity needed for universal services, 
through its own production, through purchases at regulated prices to priority producers and through 
the free market, with KESH bearing any losses.  In case of excess production by KESH as compared 
to the need of the universal services, KESH can sell this excess production on ALPEX at market 
prices . Another consequence of this energy state of emergency is that KESH must cover the losses 
 
39 Case ECS  4/17.  
40 ERE Decision No. 211 of 18  December  2019, applicable as of 1  January  2020.  WT/TPR/S /449 • Albania  
 
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  of the transmi ssion operator TSO through ALPEX and that FTL must cover the losses of the 
distribution system operator DSO/OSSH.  
4.75.  The energy state of emergency will expire in December  2023. The regime that will replace it 
is still under preparation.  
4.76.  With energy production  variable depending on hydrological conditions, Albania trades energy 
throughout the year and imports and exports significant quantities, particularly depending on supply 
conditions. In most instances , it was a net importer of electricity for between 20% a nd 30% of this 
consumption. In volume terms , it was a net exporter in 2018 and 2021, although it remained a net 
importer in value terms in both years as a result of price effects, according to the authorities 
(Chart  4.3). Albania exports hydroelectricity a t low p rices in winter and imports electricity at high 
prices in summer.  
Chart  4.3 Electricity trade,  2015 -22 
 
a Based  on Albania's merchandise trade (HS  271600).  
Source:  WTO Secretariat calculations, based on trade data provided by the authorities; and INSTAT, Energy . 
Viewed  at: https://www.instat.gov.al/en/themes/environment -and-energy/energy /. 
4.77.  Aware the vulnerability of hydropower, the Government has developed a multi -pronged 
strategy to diversify and secure its electricity supply: renovation of the existing thermal power  plant 
in Vlora, creation of a new t hermal power plant in Korce , plans of interconnection with neighbouring 
countries, development of solar PV energ y, construction of new hydropower facilities, and technical 
improvement of the network to diminish losses.  
4.78.  More specifically, Albania has been connected since 2014 to the network s of Greece and of 
North  Macedonia but has plans to reinforce those connections. There is first a project of a 400  kV 
interconnection line between Elbasan (Albania)  and Bitola (North  Macedonia) with the construction 
phase planned for 2023 -25. In a more distant future, a second 400  kV interconnection line is planned 
between Fier (Albania) and Arachtos (Greece).  
4.79.  Although Albania reduced technical losses of the network during the period und er review41, 
they remain at a relatively high level (2.09% for transmission losses and 19.7%  for distribution 
losses) . Albania has plans to invest heavily in the coming years to reduce these losses.  
4.80.  Albania has advanced plans for the construction of two ne w PV power plants, a 140  MW unit 
in Karavasta and a 100  MW unit in Spitalla. For Karavasta, the project agreement and the P PA were 
signed in 2020 and completion of construction is scheduled for 2024. The PPA took the form of a 
 
41 World Bank  (2022), Country Private Sector Diagnostic: Creating Markets in Albania , p. 50. 
-600-500-400-300-200-1000100200300400
 2015  2016  2017  2018  2019  2020  2021  2022Exports
Imports
Trade balance
-4,000-3,000-2,000-1,00001,0002,0003,0004,000
2015 2016 2017 2018 2019 2020 2021 2022Gross export (including exchanges)
Gross import (including exchanges)
Trade balanceChart 4.3 Electricity trade, 2015 -22
Trade in EUR millionTrade in GWha
a  Based on Albania's merchandise trade ( HS 271600).
WTO Secretariat calculations, based on tradedata provided by the authorities; and
INSTAT, Energy. Viewed at: https://www.instat.gov.al/en/themes/environment -and-energy/energy/Source: WT/TPR/S/ 449 • Albania  
 
- 72 - 
 
  renewable energy support auct ion for 140  MW. The auctioned volume was 70  MW with support, to 
be purchased by the Government at 24.89  EUR/MWh for a period of 15  years.42 Another 70  MW, 
without support, is to be sold at market price.  
4.81.  For Spitalla, the project agreement and the PPA were signed in June  2021, with 70 MW to be 
purchased at a price of 29.89  EUR/MWh for 15  years, and the remaining 30  MW sold on the market. 
Construction is planned to be completed in 2025.  
4.82.  Regarding wind energy, the MIE announced in 2022 a competitive procedure for wind 
electricity generators with an installed capacity from 10  MW to  75 MW. Through this bidding 
procedure, the Ministry will select projects with a total capacity of 100  MW that will benefit from 
support measu res. The winners of the auction are short listed. The process is ongoing. The winner 
will be selected in 2023. A similar auction for offshore wind farms is planned for 2024.  
4.83.  The Government also has plans to build a new hydropower facility at Skavica, locat ed on 
the Drin River, like the three other major hydropower plants. Like the others, i t will be operated by 
KESH, the state -owned power corporation. This project is at the stage of the field studies.  
4.2.2.2   Efficiency and other environmental measures  
4.84.  The energy e fficiency sector in Albania is regulated by the two main laws, the Energy Efficiency 
Law and the Law on Energy Performance in Buildings. The Energy Efficiency Law, as amended, is 
mainly in line with Directive  2012/27/EU, especially because of its amendment s approved in 2021. 
This Law aims to create and implement national policies and regulations to promote and improve 
the efficient use of energy. It sets mandatory targets for the public and private sector s including 
large consumers. To implement the Energy Efficiency Law, and in accordance with the objectives 
provided for in the NECP (Energy Efficiency Dimension), several by -laws have been approved. They 
deal with the format of the action plans of large energy consumers and their annual progress report, 
the format of local action plans for energy efficiency and the ir progress report , and the Guideline on 
the Contract Model for Energy Performance Contracting. As recognized by the authorities, the main 
challenges will be the implementation of these measures  and their financing , as well as  
capacity -building issues. Law  No. 24/2023 on Promoting the Use of Energy f rom Renewable Sources 
replaced Law  No. 7/2017 of the same title, aiming to transpose Directive  2018/2001.  The targets 
set by Albania for efficiency inclu de a share of electricity generated from PV solar plants and wind 
turbines by 2025 of 20% (1.5% at the baseline in 2022) and a reduction of distribution losses to 
18.1% in 2025 (baseline of 19.6% in 2022).  
4.85.  In December  2020, the Parliament adopted Law  No. 155/2020 on Climate Change. This Law 
plans  on, inter alia, submitting the country's Nationally Determined Contribution  (NDC) on reducing 
GHG emissions to the United  Nations Framework Convention on Climate Change ( UNFCCC ); 
integrating mitigation and adaptation issues into legislation, strategies, and programmes; and 
creating a comprehensive legal and inter -institutional framework for climate action at the national 
level. A revised NDC was submitted to the UNFCC C in October  2021. It commits to an unconditional 
emissions reduction target of 20.9% by  2030 compared to the "business as usual " scenario . This is 
an increase compared to the first NDC , which aimed to reduce emissions by 11.5% by 2030 
compared to 2016 levels.43 The La w also includes provisions for monitoring, reporting , and verifying 
GHG emissions, and the foundation for the transposition and implementation of the Emission Trading 
Scheme Directive, as anticipated by signing the Sofia Declaration in October  2020. This D eclaration 
endorses the E uropean  Union's Climate  Law also for Western Balkans.  
 
42 This price is significantly lower than the average base and peak prices at the Hungarian Power 
eXchange  (HuPX), the reference for the electricity import price in the region.  
43 UNDP , Albania . Viewed  at: https://climatepromise.undp.org/what -we-do/where -we-
work/albania#:~:text=Key%20highlights%20from%20the%20NDC,2030%20compared%20to%202016%20le
vels. WT/TPR/S /449 • Albania  
 
- 73 - 
 
  4.3  Services  
4.3.1   Financial services  
4.86.  The share of financial services in GDP slightly increased over the review period (from 2.01% 
to 2.15%). Table  4.7 describes the evolution of the main economic indicators of the financial services 
sector during the period under review.  
Table  4.7 Evolution of the main economic indicators of the financial services 
sector,  2016 -22 
(ALL billion)  
  2016  2017  2018  2019  2020  2021  2022a 
Total financial system assets, of 
which  1,554.9  1,590.9  1,612.2  1,646.2  1,762.7  1,981.4  2,052.3  
Banks  1,407.3  1,445.3  1,453.5  1,475.6  1,580.8  1,773.8  1,864.1  
Non-bank financial and credit 
institutions (NBFCIs) , of which  147.6  145.6  158.8  170.6  181.9  207.6  188.1  
Insurance companies  29.7 30.6 31.6 30.8 38.9 40.6 43.1 
Pension funds  1.33 1.73 2.30 2.92 3.62 4.60 5.47 
Investment funds  72.9 65.6 68.1 67.2 67.6  55.1c 
Other  43.7 47.6 56.8 69.7 71.9 80.4 84.5 
Credits, of which  627.1  631.5  616.6  619.2  654.1  722.5  774.3  
Banks  600.4  600.9  580.7  575.7  608.9  671 718.8  
NBFCIs  26.7 30.6 35.9 43.5 45.2 51.5 55.5 
Non-performing loans/total 
loans  18.0%  13.0%  10.9% 8.4% 8.2%  6.2% 5.5%  
Non-performing bank loans  18.2% 13.2%  11.1% 8.4% 8.1%  5.7% 5.1% 
Non-performing NFBCIs loans  10.8% 10.7% 8.5%  9.0%  10.5% 12.5%  12.5%  
Credits/GDP  42.6% 40.7%  37.7%  36.6%  39.8%  38.2%  37.2% 
Deposits , of which  1,162.0  1,171.3  1,187.2  1,201.37  1,294.84  1,442.71  1,512.34  
Banks  1,157  1,165  1,180  1,193  1,286  1,433  1,502  
NBFCIs  5.0 6.3 7.2 8.4 8.8 9.7 10.3 
Deposits/GDP  78.9%  75.5%  72.5%  71.0%  78.8% 76.3%  72.6%  
Share of financial services in 
GDP 2.01%  1.97%  1.93%  2.29%  2.36%  2.15%  .. 
of which insurance  0.98%  1.04%  1.01%  1.04%  1.01%  1.02%  .. 
Employment in the financial services 
sector (number)  6,949  6,877  6,738  6,383  6,563  6,609  6,637  
of which insurance (number)  1,878  1,802  1,967  1,970  2,019  2,077  .. 
Financial services exports as % 
of GDP 0.02%  0.01%  0.06%  0.04%  0.09%  0.05%  .. 
.. Not available.  
a Data as of September  2022.  
b Does not include alternative investment fund (AIF) assets because they submit yearly reports.  
Source:  Information provided by the Bank of Albania and Financial Supervisory Authority.  
4.3.1.1   Banking services  
4.87.  The number of banks operating in Albania declined from 16 to 12 between 2014 and 2022 
(and soon to 11 due the ongoing merger of two domestically owned banks) as a consequence of the 
progressive departure fr om the Albanian market of Greek banks linked to the bail -out of the Greek 
banking system. The last Greek bank present in Albania stopped its operations in 2021.  
4.88.  Nevertheless, the market is still largely dominated by foreign banks , whose cumulative assets 
in 2022 represented a share of 77% of the total assets. The proportion of domestically owned assets 
grew significantly during the review period, from 13.7% in 2014 to 33% in 2022.  
4.89.  Four of the five top banks in 2022 were foreign -owned, all in the form of ful l subsidiaries. The 
fifth bank is a locally owned bank, Credi ns Bank. The five top banks account for 75%of the market. 
Whereas the number of banks decreased during the period, the concentration has remained virtually 
constant since 2014.  WT/TPR/S/ 449 • Albania  
 
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  4.90.  Following privatiz ations during the democratic transition, there is no more state ownership in 
the sector. While the volume of credits grew overall, the value and proportion of non -performing 
loans (NPLs) by banks, which had surged in the aftermath of the 2008 financial cri sis, fell 
considerably during the review period, declining each year from 18. 2% in 2016 to 5. 1% in 2022 
(Table  4.7). To obtain these results, the Government devised in 2015 an action plan including the 
improvement of the credit registry, the adoption of a modernized bankruptcy law  
(Law No. 110/2016)44, the obligation for banks to write off loans with three  years of losses, 
improvements to the Civil Code to facilitate the seizure of collateral, the so -called "Tirana approach" 
encouraging the treatment of bad  loans outside the courts, and a coordinated approach among banks 
specifically licensed to buy bad loans , especially from micro finance actors , and to act as a collective 
"bad bank".  
4.91.  Paradoxically, both deposits and credits measured as a percentage of GDP decreased, from 
78.9% in 2016 to 72.6% in 2022 for deposits and from 42. 6% in 2016 to 37. 2% in 2022 for credits. 
This apparent paradox could be due to four factors: (i)  GDP has increased more than both deposits 
and loans; (ii)  almost half the deposits are maintained in foreign currencies, mostly in euro, which 
suffered a 15% depreciation during this period; (iii)  almost half the loans are denominated in euro, 
and (iv)  many NPLs have been written offs. The high proportion of both credits and deposits in 
foreign currencies is a notable feature of the banking system.  
4.92.  In its latest assessment of the stability of the Albanian financial system in December  2022, 
the IMF considered that:  
The banking system has weathered the successive shocks relatively well, support ed by 
the [Bank of Albania's] ongoing efforts to strengthen regulation and supervision, but 
pockets of vulnerabilities exist. … Capitalization of the banking system is above 
regulatory requirements [except for one large bank]. The banking system is suscept ible 
to credit, exchange rate and interest rate risks, reflecting large unhedged FX loans (a 
quarter of total loans), prevalence of banks loans with variable interest rates, and large 
holdings of government bonds.45 
4.93.  The IMF also notes that "the presence of banks with significant shareholding by individuals 
and non -financial groups raises the risk of capital shortfalls, related -party transactions, and large 
exposures"46 and that this potential problem has to be tackled through increased supervisio n and 
the transposition of EU  standards.  
4.94.  The Ministry of Finance and Economy is responsible for the coordination and the strategic 
management of international financial, monetary, and tax matters. The supervisory authority for the 
banking sector is the Ban k of Albania (BoA), and the national competition authority is in charge of 
competition issues including for the banking sector.  
4.95.  Albania has three preferential arrangements affecting banking services. First, the Additional 
Protocol  6 of the Central European  Free Trade Agreement (CEFTA) on trade in services, whose 
schedule of commitments entails preferential treatment on banking services for other CEFTA Parties 
compared those undertaken in the GATS schedule, which entered into force in 2021. Second, the 
Stabilisation and Association Agreement (SAA) between the European  Union and Albania entails the 
approximation of Albanian legislation across all sectors and modes of supply that of the 
European  Union. Third, the provisions of the SAA are preserved mutatis  mutandis under the 
Partnership, Trade and Cooperation Agreement between Albania and the United  Kingdom, which 
entered into force in May  2021.  
 
44 Law 110/2016 is aimed to modernize and strengthen the insolvency framework by making it more 
efficient and transparent. For example, the law introduced the concept of accelerated reorganization using 
hybrid procedures (combining ou t-of-court and court procedures). It does not apply to insurance societies, 
banks, pension funds, and other deposit -takers for which insolvency is regulated under a specific law.  
45 IMF (2022), Albania: Staff Report for the 2022 Article  IV Consultation , IMF Country  Report  
No. 22/362, pp.  15-16. Viewed  at: https://www.imf.org/en/Pub lications/CR/Issues/2022/12/09/Albania -2022-
Article -IV-Consultation -Press -Release -Staff-Report -and-Statement -by-the-526816 . 
46 IMF Country Report No.  22/362, p.  16. WT/TPR/S /449 • Albania  
 
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  4.96.  In May  2022, following a positive assessment of its supervisory framework by PwC Spain and 
supported by the E BRD, the BoA requested the formal equivalence process with the EU  framework. 
The response to this request is still pending.  
4.97.  During the COVID -19 pandemic, the BoA undertook significant regulatory changes to alleviate 
the possible effects on financial institutions an d in order to create facilities for borrowers regarding 
repayment of loans. These included a temporary moratorium on credit repayments to ease the 
mandatory classification and provisioning of loans, an easier framework on the classification and 
provisionin g of restructured loans, and the planned introduction of more restrictive requirements on 
loan restructuring was postponed from January  2021 to January  2022. The reserve funds created 
for immovable properties acquired against debt settlement were suspended  until December  2020. 
In April  2020, the Supervisory Council of the BoA decided to suspend dividend distribution by banks 
of the allocated profit from the previous periods, and the profit to be realized during the first half of 
2020. This measure was subse quently extended multiple times to cover all profits until 2022.  
4.98.  There has been no major change to the banking licensing regime (Banking Law 
No. 9662/2006), which was described in detail in the previous Review47, except for three new 
instructions of the Bo A.48 These instructions address the reinforcement of the Anti -Money Laundering 
and Combating the Financing of Terrorism (AML/CFT) regulatory framework (see below). The 
licensing process remains based on "fit and proper" test criteria. Additional criteria f or foreign banks 
include that a requesting foreign bank must be supervised on a consolidated and sustainable  basis 
by the relevant foreign supervisory authorities and must provide certain documentation 
(e.g. information relating to the assessment of the bank's performance issued by the supervisory 
authority of the home country and by the international rating age ncies and ratings, if applicable).  
4.99.  Banking licences are delivered by the Supervisory Council of the BoA. There are no limitations 
on the number of banks licensed. The licensing process of banks and branches of foreign banks 
includes two phases: the initial  approval, and the granting of the licence. The BoA shall, within 
three  months of the date of the acceptance of the application for a licence, grant or refuse the initial 
approval, and shall notify the applicant of such decision in writing. The BoA shall r epeal the initial 
approval if the bank, or the branch of the foreign bank, does not meet the conditions for obtaining 
the licence within 12  months of the initial approval. The BoA has the right to extend this deadline 
for no longer than six  months from the  date of its expiry.  
4.100.   The licence is perpetual, non -transferable, and not tradable. The annex activities, for which 
the bank, or the branch of a foreign bank, is licensed following compliance with the requirements 
set out in the Banking Law and by -laws issu ed by the BoA, are an integral part of the licence. The 
minimum capital requirements for subsidiaries and for branches are the same: ALL  1 billion.  
4.101.   Interest rates and fees charged are determined freely by banks, but all financial institutions 
are required to make transparent the methodology for their calculation.  Since the beginning of 2022, 
a cap on Effective Interest Rates (EIR), i.e.  the addition of interest rate, commissions, fees, 
compulsory insurance, and other compulsory expenses that are charged to the borrower, was 
instituted. It applies only to consumer loans as a consumer protection measure. The cap is calculated 
based on the market average for the previous six  months plus 33% and is published every semester.  
4.102.   During the review period, Albania upda ted the prudential regulations for the banking sector, 
transposing the (evolving) EU  acquis  (Table  4.8). In 2019, in line with Basel  III requirements, the 
minimum ratio of Common Equity Tier  1 to the risk -weighted exposures was raised from 4.5% to 
6.75%, a nd the minimum ratio of Tier  1 capital to risk -weighted exposures was raised from 6% to 
9%, by proportionally adapting these ratios to the required minimum capital adequacy ratio of 12%.  
 
47 WTO document WT/TPR/ S/337/ Rev.1, Box 4.4. 
48 Decisions No.  15/2016, No.  46/2019, and No.  61/2021 of the Supervisory Council of the BoA, which 
amended Regulation No.  14/2009 on Granting the License and the Exercise of Banking Activity of Banks and 
Branches of Foreign Banks in the Republic of Albania.  WT/TPR/S/ 449 • Albania  
 
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  4.103.   Albania also adopted numerous AML/CFT measures during the review period.49 These 
regulations were adopted following the recommendations of the MONEYVAL50 experts and amend 
the basic AML/CFT framework established by Law  No. 9917/2008  on the Prevention of Money 
Laundering and Financing of Terrorism.  
Table  4.8 Prudential regulations adopted since 2017 and corresponding EU  acquis  
New Albanian prudential regulation  Corresponding EU acquis  
Regulation No.  04/2017 on Consolidated Supervision  Regulation  (EU) No. 575/2013/EU on Prudential 
Requirements for Credit Institutions and Investment 
Firms and Delegated Regulation (EU) 2015/2303 on 
regulatory technical standards specifying the 
definitions and coordinating the supplementary 
supervision of risk concentrati on and intra -group 
transactions  
Regulation No.  59/2008 on Transparency for Banking 
and Financial Products and Services, amended by 
Decisions No.  25/2017 and No.  64/2021  Directive  2008/48/EC on Credit Agreements for 
Consumers and Directive  2014/17/EU on Cr edit 
Agreements for Consumers Relating to Residential 
Immovable Property; and Regulation (EU) 
2016/1011, known also as the "Benchmark 
Regulation"  
Regulation No.  63/2012 on the Core Management 
Principles of Banks and Branches of Foreign Banks 
and Criteria for the Approval of their Administrators, 
amended by Decisions No.  73/2017 and No.  21/2022  Relevant EBA Guidelines relating to Directive 
2013/36/EU, Directive 2014/65/EU, and Regulation  
(EU) No. 575/2013. Joint relevant ESMA and EBA 
Guidelines relating to Directives  2013/36/EU and 
2014/65/EU  
Regulation No.  67/2015 on the Internal Audit System, 
amended by Decision  No. 74/2017  Relevant EBA Guidelines relating to Directive 
2013/36/EU and Directive 2014/65/EU  
Regulation No.  48/2015 on Consumer Credit and 
Mortgage Credit, amended by Decisions No.  27/2018 
and No.  69/2021  Directive 2014/17/EU on Credit Agreements for 
Consumers Relating to Residential Immovable 
Property and Directive 2008/48/EU on Credit 
Agreements for Consumers  
Regulation No.  69/2014 on the Regulatory Capital of 
the Bank, amended by Decisions No.  2/2019 and 
No. 45/2022  Regulations  (EU) No. 575/2013 and No.  2019/876 
and Technical Standards drafted for their 
implementation  
Regulation No.  27/2019 on Liquidity Coverage Ratio, 
amended by Decision No.  46/2021  Regulation  (EU) No. 575/2013 and EU Commission 
Delegated Regulation No.  2015/61, amended to 
reflect Regulation  (EU) No. 2019/876 (CRR  II) 
Regulation No.  48/2013 on Capital Adequacy Ratio, 
amended by Decisions No.  7/2020, No.  68/2021, and 
No. 44/2022  Regulation s (EU) No. 575/2013 and No.  2019/876 
and Technical Standards drafted for their 
implementation  
Regulation No.  10/2014 on Risk Management from 
Large Exposure of Banks, amended by Decision 
No. 53/2020  CRR and CRR  II (Regulation (EU)  No. 575/2013 
reviewed through CRR  II or Regulation (EU) 
No. 2019/876)  
Regulation No.  63/2020 on the Leverage Ratio of 
Banks  CRR and CRR  II (Regulation  (EU) No. 575/201 3 
amended by Regulation  (EU) No. 2019/876)  
Regulation No.  70/2020 on the Net Stable Funding 
Ratio of Banks  CRR and CRR  II (Regulation  (EU) No. 575/2013 
amended by Regulation  (EU) No.  2019/876/EU)  
Source:  Information provided by the authorities.  
4.104.   The changes deal mainly with additional requirements of the authority for applying entities, 
during the licensing process, related with the integrity of shareholders/owners (including indirect 
shareholders/owners and ultimate beneficiaries). They also expand the focus  on persons related to 
 
49 Decision No.  22/2017 amending Regulation No.  44/2009 on Prevention of Money Laundering and 
Terrorist Financing; Decision No.  46/2019 amending Regulation No.  14/2009 on Licensing and Carrying Out the 
Activity of Banks and Branches of Foreign Banks in the  Republic of Albania; Decision No.  47/2019 amending 
Regulation No.  01/2013 on Licensing and Activity of Non -bank Financial Institutions; Decisions No.  48/2019 
and No.  52/ 2022 amending Regulation No.  104/2016 on Licensing and Activity of Savings and Loan 
Associations and Their Unions; Decision No.  49/2019 amending Regulation No.  31/2007 on Licensing, 
Organization, Activity and Supervision of Foreign Exchange Bureaus; and Decision No.  50/2019 amending 
Regulation No  2/2013 on Risk Management in the Activity o f Non -bank Financial Institutions.  
50 MONEYVAL, the Committee of Experts on the Evaluation of Anti -Money Laundering Measures and the 
Financing of Terrorism, is a permanent monitoring body of the Council of Europe entrusted with the task of 
assessing complia nce with the principal international standards to counter money laundering and the financing  
of terrorism and the effectiveness of their implementation, as well as with the task of making 
recommendations to national authorities in respect of necessary impr ovements to their systems.  WT/TPR/S /449 • Albania  
 
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  shareholders if they have criminal records. In addition, requirements were added to ensure a process 
of continuous reassessment of the integrity of shareholders/owners, to impose a reporting of the 
results once a year to the BoA , and to notify whenever there are changes to the conditions under 
which the licence was granted and prior approvals.  
4.105.   The newly adopted regulations also provided some cases where the BoA can refuse to grant 
a licence, mainly if the entity that is expected to be  licensed may harm the public interest, or if the 
shareholders/owners of the proposed entity present a high risk, they present a shell bank, own 
bearer shares, or are nominee shareholders, or if the entity has a complex ownership structure.  
4.106.   This AML/CFT le gal framework was reviewed five times by the Financial Action Task Force 
(FATF) during the review period. The initial Mutual Evaluation Report was adopted in July  2018, 
followed by four "enhanced" follow -up reports.51 Albania remains under enhanced surveil lance and 
is due to report to MONEYVAL on its progress within two  years. As a result of these evaluations, 
Albania is currently  rated as "compliant" on 6  recommendations, "largely compliant" on 
31 recommendations, "partially compliant" on 2  recommendations , and 1  recommendation is not 
applicable.  
4.107.   Albania also modernized its legal framework for payment systems to promote and facilitate 
e-payments with the triple aim of transposing the EU  acquis , reducing the size of the informal 
economy, and fighting organiz ed crime. The Law on Payments Services and the Law on Payment 
Account with Basic Features therefore transpose EU Directive  2015/2366. The objective set by the 
2017 national strategy on payments of 10  cashless payments per capita by end -2023 has already 
been achieved, with a figure of 12.5 in 2021 and 16 in 2022.  
4.108.   The bank deposit insurance scheme continues to guarantee ALL  2.5 million  per depositor 
and is still funded by a contribution of the banks based on the average of insured deposits registered 
in the b ank on the last day of every month for each quarter. Its scope was enlarged during the 
period under review to include accounts detained in savings and credit associations. Savings and 
loans associations and their unions contribute to the fund since they co llect deposits from their 
members.  
4.3.1.2   Savings and loans and micro finance institutions  
4.109.   As of December  2022, there were 16  active savings and loans associations (SLAs). The total 
assets of the SLAs amount to ALL  14.2 billion, representing only 0.75% of the tot al assets of the 
banking system. The asset structure of the SLAs is oriented towards lending to its members (72%) 
and liquid assets (22%). The gross loan portfolio of SLAs amounts to ALL  10.7 billion and constitutes 
only 1.48% of the loan portfolio of the banking system. In December  2022, the indicator of NPLs for 
SLAs reached 4.71%, with a decrease of 0.47  percentage points compared with the previous year. 
During 2022, SLAs generated a positive financial result, amounting to ALL  184 million. This result is  
slightly lower compared with the previous year. For 2022, the average return on assets was 1.29%, 
while the average return on capital reached 10.47%.  
4.110.   Most of the credit portfolio of non -bank financial institutions (NBFI s) including those focused 
on microf inance is held by the entities licensed for all lending activities and micro  lending  (77%). 
The loan portfolio of NBFIs reached 6.24% of the total loan portfolio of the banking system, 
registering an increase of 0.34  p.p. compared to the previous year (Table 4.9). 
Table  4.9 Lending activities of non -bank financial institutions,  2019 -22 
(ALL billion)  
Lending activities  December  2019  December  2020  December  2021  December  2022  
General lending activities  14.7 15.6 16.6 18.4 
Micro lending  11.4 11.6 15.4 18.0 
Financial lease  8.9 9.1 9.6 10.4 
Factoring  0.5 0.4 0.5 0.4 
Gross portfolio  35.5 36.6 42.1 47.4 
Source:  Bank of Albania.  
 
51 For the latest of these reports see: https://rm.coe.int/moneyval -2023-2-fur-albania/1680abad5a . WT/TPR/S/ 449 • Albania  
 
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  4.111.   At the end of 2022, the indicator of NPL (gross) stood at 13.2% (slightly lower than the 
previous year), while NPL (net) stood at only 3.5%. The increase in the total number of NPLs appears 
higher among lending and microlending entities. During 2022, NBFIs generated a positive result of 
ALL 3.33 billion, the highest contribution  coming from microlending entities. The net result of NBFIs 
constituted about 13.3% of the result of the banking system. The average return on assets for NBFIs 
reached 4.11%, while the average return on equity reached 10.7%.  
4.112.   Albanian Post does not play a s ignificant role in financial services. It does not have a banking 
licence but only an Electronic Money Institution licence, which is mainly used for the payment of 
pensions and social allowances.  
4.3.1.3   Insurance services  
4.113.   In 2022, there were 12  insurance companie s, of which 4  life and 8  non-life, and 1 of the 
non-life insurance companies also licensed to carry out reinsurance. Of these companies, four are 
majority foreign -owned. All foreign insurance companies operate as full subsidiaries. In terms of 
capital, 53%  of the cumulated capital of insurance companies is foreign owned. This compares to 
10 companies and 43.84% of foreign -owned capital at the beginning of the period in 2015.  
4.114.   The total balance sheet of the insurance sector as of 31  December  2022 was ALL  43.6 billion, 
of which life insurance (8%) and non -life (92%), with the share of gross written premiums as a 
share of GDP remaining broadly unchanged ( Table  4.10). The cumulative market share of the top 
five companies in 2022 was 100% for life insurance, and 8 0.30% for non -life. 
Table  4.10 Gross written premiums,  2018 -22 
(ALL billion)  
 2018  2019  2020  2021  2022  
As share of GDP (%)  1.03 1.04 1.01 1.02 0.99 
Life insurance  1.10 1.20 1.20 1.40 1.70 
Non-life insurance  15.80  16.40  15.40  17.80  19.40  
Source:  Information provided by the authorities.  
4.115.   The authority in charge of insurance regulation and supervision, including licensing and 
insurance sector market conduct, is the Albanian Financial Supervisory Authority (AFSA). The 
national competition authority is in charge of competition issues including for the insurance sector.  
4.116.   The main regulatory development for the sector during the period under review was the 
adoption of the new Law on Insuran ce in the Transport Sector approved by Parliament on 
16 March  2021 and which entered into force on 1  July 2021. This law is partially aligned with 
Directive  2009/103/EC relating to insurance against civil liability in respect of the use of motor 
vehicles.  
4.117.   As a member of the International Association of Insurance Supervision (IAIS), AFSA is a 
signatory to a 2022 multilateral memorandum of understanding (MMoU) for cooperation and 
information exchange between the 77  IAIS members. Albania underwent a two -year p eer review 
process of all Insurance Core Principles (ICPs), which are international standards for the supervision 
of its insurance market. This assessment stated that out of 24  ICPs, 10  were observed and 12  were 
largely observed52and 2  not applicable.  
4.118.   The provisions on the supervision of domestic insurance companies apply, mutatis mutandis , 
to the supervision of other persons, including branches of insurance companies from foreign 
countries or EU  member  States. In the case of EU member  States, the Law stipulates that an 
insurance company carrying out insurance activity under specific classes in a n EU member State 
may also carry out insurance activity under the same classes in Albania, either directly or through 
its branch. Howe ver, the provisions of the Law that are related to direct insurance provided by an 
insurance company from an EU  member  State in Albania shall be applicable as of the date Albania 
 
52 For more detailed elements on this assessment, see: https://www.iaisweb.org/2023/07/det ailed-
assessment -of-observance -of-the-iais-insurance -core-principles -in-albania/ . WT/TPR/S /449 • Albania  
 
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  becomes a member of the European  Union and, as a consequence, the rest of the  regulation of the 
direct insurance activity will take place after its accession to the European  Union.  
4.119.   The licensing process of the insurance companies is regulated by Law  No. 52/2014 on the 
Insurance and Reinsurance Activity, which was described in detai l in the previous Review and did 
not change substantially during the period under review.53 
4.120.   Foreign -owned companies wishing to carry out business activity in Albania may do so either 
by establishing a subsidiary or through a branch. AFSA may refuse to appr ove an application for 
licensing a foreign insurance company branch in the absence of reciprocity. In this context, lack of 
reciprocity shall mean that the supervisory standards are not equivalent to the Albanian supervisory 
framework. The aim of this reci procity provision is to ensure stability in the domestic insurance 
market and ensure effective supervision of all the operators in this market. Licensing criteria are 
based on technical and financial capacities, minimum capital requirements, business plans , and risk 
management.  
4.121.   Licences for life insurance activities are granted separately from licences for non -life 
insurance. There is no differential treatment for foreigners in the licensing process and no limitation 
on the number of providers.  The maximum processing time for an application is 12  months. The 
period of validity is unlimited, and licences are non -transferable and not purchasable.  The minimum 
capital requirements to obtain a licence is ALL  260 million for non -life insurance and ALL  370 million 
for life insurance.  
4.122.   There is no approval required for life and non -life premiums and products.  
4.3.1.4   Pension funds  
4.123.   At the end of 2022, there were four  management companies, four  voluntary pension funds, 
and three  banks as depositories of these pension funds operating on the pension fund market. The 
management companies are also licensed to manage collective investment undertakings. 
Throughout 2022, two  new voluntary pension funds were granted licences, and one of these 
two funds began operating in January  2023. The other one has not started its activity  yet. 
4.124.   Among the two management companies licensed for managing the pension funds, one is 
100% foreign -owned , and the other is 51% owned by foreign interests, and 49% domestically 
owned. At the end of 2022, the t otal assets of pensions funds stood at ALL  5.7 billion.  
4.125.   AFSA is the sole regulatory and supervisory authority of the voluntary pension fund market. 
The basic law regulating the matter is Law  No. 10197/2009 on Voluntary Pension Funds.  
4.126.   AFSA has drafted a new  law on private pension funds in order to comply with 
Directive  (EU) 2016/2341 on the Activities and Supervision of Occupational Pension Institutions 
(IORP  II). The draft law is currently scheduled to be approved by the Parliament in 2023. It aims at 
devel oping the market for private pension funds, through the increase of participation in private 
pension schemes, the review of investment policy, fiscal incentives, and the increase of the 
confidence of the fund members by raising the requirements for transpa rency and information, as 
well as by establishing clear rules regarding the transparency and governance of pension fund 
management companies.  
4.127.   The draft law contains the following elements: (i)  creation of two  forms of pension funds: 
"open-end" and " closed-end"54; (ii) improvements of the licensing procedure of pension fund 
management companies; (iii)  increasing transparency and information requirements towards the 
pension fund members; (iv)  new rules on governance and risk management; (v)  portfolio 
diversif ication obligations through investment policy review; (vi) marketing and promotional activity; 
(vii) authorization of cross -border activity of management companies that offer closed -end private 
pension funds; and (viii)  tax incentives to create fiscal ince ntives for pension fund members and 
beneficiaries.  
 
53 WTO document WT/TPR/S/337/ Rev.1, 1 August  2016, Box 4.5.  
54 The closed -end pension fund is defined in accordance with Directive IORP  II. WT/TPR/S/ 449 • Albania  
 
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  4.3.1.5   Collective investment undertakings services  
4.128.   Currently six  management companies operate on the collective investment market, of which 
four are management companies that administer both voluntary pension fun ds and collective 
investment undertakings and two  are management companies administering only collective 
investment undertakings. In addition, there are 11  "open ended publicly offered investment funds" 
and 2  "alternative investment funds" (AIFs). The net asset value of investment funds at the end 
of 2022 reached about ALL  46.05  billion (about EUR  403 million).  
4.129.   AFSA is the supervisory authority for the investment funds sector, and the national 
competition authority is in charge of competition issues includi ng for the collective investment 
undertaking sector.  
4.130.   The establishment and registration of collective investment undertakings is determined by 
Law No. 56/2020 on Collective Investment Undertakings (CIUs), which replaced 
Law No. 10198/2009. The new law intr oduced a number of changes, including enabling the creation 
of new forms of CIUs such as U ndertaking for Collective Investment in Transferable 
Securities  (UCITS), non -UCITS, and AIFs55, increasing investor protection through additional 
information and docu mentation requirements, allowing under certain circumstances the recognition 
of undertakings that can be publicly offered in their country of origin for the cross -border 
administration and marketing of CIUs in Albania, and imposing the appointment of a dep ositary to 
each undertaking administered by a management company to ensure investment property is held 
separately. Foreign management companies licensed by an EU  member  State benefit from 
automatic recognition, in accordance with the EU -Albania SAA. Foreign non -EU management 
companies may be recognized by AFSA if they fulfil the relevant conditions (including prudential ) 
and equivalent arrangements for recognition of foreign management companies exist in the applicant 
undertaking's home country. In the  case of foreign alternative investment companies, there is no 
preferential treatment for EU -licensed companies and recognition may be granted by AFSA based 
on the same criteria as mentioned above.  
4.131.   For all of these types of licences, the period  of validity  is indefinite, they are not transferable, 
and there are no limitations on the number of providers/licences.  
4.3.1.6   Securities and stock exchanges services  
4.132.   Capital market services are still embryonic in Albania. The government securities market is 
one of the bigg est segments, followed by the market of bonds issued through private placement 
with an outstanding volume of about EUR  123 million at the end of 2022. However, during the period 
under review, the main preconditions for capital market development were estab lished and the legal 
and regulatory framework governing the capital market as well as the trade and post -trade 
infrastructure has been put in place. The Government intends to develop further the capital market 
and has approved a policy document on its deve lopment, prepared by AFSA in collaboration with the 
Ministry of Finance and Economy in 2023.56 The policy aims to provide alternative sources of funding 
to businesses via the issuance of corporate bonds or IPOs, and also includes the possible listing of 
some SOEs ( Section  3.3.5). 
4.133.   A privately owned securities exchange (ALSE) was licensed in 2017 and has been operational 
since 2018. Government securities are traded mainly on the ALSE. At the end of April  2023, AFSA 
approved the first prospectus of corporate b onds issued by a company (microfinance institution) 
through public offer. These bonds are already admitted to trading on the ALSE. The establishment 
in 2019 of a company operating as Central Securities Depository made the post -trade infrastructure 
for corp orate securities fully operational.  
 
55 Alternative funds can only be marketed and sold to professional investors, are only registered with 
the Authority, and do not have prudential supervisory requirements, while the management company of AIFs 
and the depository of AIFs are regulated by the La w according to the relevant EU Directive.  
56 The policy document, Enabling the Environment for Capital Market Development in Albania, 
2023-2027, was approved by Council of Ministers Decision No.  266/2023.  WT/TPR/S /449 • Albania  
 
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  4.134.   The legal framework of those services was revamped with Law  No. 62/2020 on Capital 
Markets and its various by -laws, which were finalized in 2020.57 Drafted in alignment with 
EU Directives and Regulations in the field of capital markets, especially with the Directive of Markets 
in Financial Instruments (MIFID  II), the law sets (i) stricter requirements for licensing and regulation 
of entities operating in the capital market and investment fund markets; (ii)  transparency 
requirements for issuers and listed companies; and (iii)  higher requirements for the market 
operators in order to prevent market abuse and manipulation.  
4.135.   The Ministry of Finance and Economy is responsible for guiding the legislative process in the 
capital mar ket sector; it is the proposing ministry of such legislation and it follows the entire process 
until the approval of legislation by the Parliament. In addition, the Ministry of Finance and Economy 
cooperates with local authorities and market participants f or enhancing capital market development. 
AFSA is the supervisory authority for the capital market sector, and the national competition 
authority is in charge of competition issues including for the capital market sector.  
4.136.   The licensing conditions for foreig n security dealers and assets managers are identical. They 
can provide their services by the establishment of a branch or representative office, or by the use 
of a tied agent established in Albania, provided that those services and activities are covered b y a 
licence granted by their home country competent authority. Unless the Authority has reason to doubt 
the adequacy of the administrative structure or the financial situation of a foreign investment firm, 
taking into account the activities envisaged, it m ust, within three  months of the reception of the 
request, recognize the foreign investment firm and inform its home state or country regulatory 
authority and the foreign investment firm accordingly. The existence of equivalent arrangements for 
recognition of foreign investment firm in the home country's legislation of the applicant is a 
pre-condition for such recognition. There is no preferential treatment for EU  firms in that regard.  
4.137.   Regarding foreign -owned exchanges, no person can establish or operate an exchange or 
maintain or assist in establishing, operating, or maintaining an exchange, unless the person is 
licensed or recognized by AFSA. Any legal person that is licensed as a market institution in a foreign 
country may apply to the Authority for recogn ition. The Authority may recognize an operator of a 
foreign market institution where it is established that the market institution complies with the 
requirements that are equivalent to those provided for in Law  No. 62/2020 and by -laws made under 
it. There,  too, there is no preferential treatment for EU  firms.  
4.138.   The period of validity of those licences is indefinite, and they are not transferable. There are 
no limitations on the number of providers  and no restrictions on foreigners buying and selling on the 
stock market.  
4.139.   Companies listed on an exchange in the future  will have to submit reports to AFSA and to 
the public at least semi -annually, and are required to publish relevant ad hoc notices on significant 
developments. They must also submit information to th e Authority and to the public regarding 
significant developments that may reasonably be expected to have a significant effect on the price 
of the securities market no later than the close of the second business day following such 
development, or sooner, to  protect investors or the market. Every issuer of a security listed for 
trading on an exchange must also file with the exchange a copy of any report filed with AFSA.  
4.3.1.7   Fintech and crypto -assets  
4.140.   As a complement to its 2017 national payment strategy (see above ), Albania adopted on 
Law No. 66/2020 on Financial Markets based on Distributed Ledger Technology, which entered into 
force on 1  September  2020. It provides the legal framework for the regulation and supervision of 
crypto -assets and entities that are engag ed in the issuance, trading, and custody of these assets. 
The legislation covers conduct, prudential, and anti -money laundering elements.  
 
57 Notably, Regulations No.  195/2020 on Licensing of Investment Firms, Branch Registration and 
Recognition of Foreign Investment Firms; No. 196/2020 on Certification and Qualifications of Investment Firm 
Key Function Holders; No.  197/2020 on Clients Suitability Assessment; No.  187/2020 on the Form and 
Regist ering Procedure of Bond Issuance Offering Memorandum; and No.  188/2020 on the Registration and 
Activity of Investment Firm's Tied Agent. Other by -laws have been drafted within the framework of a new 
project, " Strengthening the Supervision Capacities of AFS A: Focus on Capital Market Development", with 
support of the World Bank . WT/TPR/S/ 449 • Albania  
 
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  4.3.2   Telecommunications services  
4.141.   The telecommunications sector in Albania significantly developed during the period under 
review  (Table  4.11) , in line with the general evolution of the sector (e.g.  decline of fixed lines, growth 
of Internet broadband, and active enforcement of the interconnection competition regime), on par 
with regional averages and with an increased c oncentration of the mobile providers.  
Table  4.11 Main economic indicators of the telecommunication s sector,  2016 -22 
 2016  2017  2018  2019  2020  2021  2022  
Subscriptions (including pre -paid) per 100 inhabitants  
Fixed -line telephony  8.6 8.8 8.7 8.5 7.9 7.0 6.4 
Mobile telephony  182.9  198.5  144.3  118 117.2  123.1  132.5  
Internet  
(fixed broadband)  9.3 10.8 12.6 15.2 17.8 19.7 20.3 
Internet  
(mobile broadband)  60.0 72.0 63.0 63.0 70.0 73.0 84.0 
Overall Internet users 
per 100 inhabitants  67.6 83.3 75.6 77.7 88.1 92.4 104.3  
Number of active users  
Fixed -line  248,640  246,720  248,631  242,859  223,469  197,690  178,227  
Internet  
(fixed broadband)  266,379  303,612  361,947  436,192  508,937  559,394  567,710  
Mobile  3,490,686  3,625,699  2,714,878  2,630,076  2,618,880  2,635,466  2,923,471  
Internet  
(mobile + fixed)  1,686,354  2,030,978  1,809,996  1,789,158  1,998,579  2,056,444  2,347,871  
Market share of the top provider  
Fixed -line 71.0%  69.5%  71.2%  72.7%  75.2%  77.3%  80.1%  
Mobile  51.0%  48.0%  47.0%  48.0%  47.0%  45.0%  48.0%  
Internet  
(fixed broadband)  41.0%  40.0%  36.0%  31.0%  25.0%  21.0%  22.0%  
Internet  
(mobile broadband)  55.0%  51.0%  47.0%  53.0%  49.0%  45.0%  49.0%  
Cumulative market share of top  3 providers  
Fixed -line 91.8%  92.9%  92.0%  92.0%  92.6%  91.9%  91.2%  
Mobile  95.0%  95.0%  100.0%  100.0%  100.0%  100.0%  100.0%  
Internet  
(fixed broadband)  75.0%  75.0%  68.0%  60.0%  56.0%  52.0%  51.0%  
Internet  
(mobile broadband)  96.0%  95.0%  100.0%  100.0%  100.0%  100.0%  100.0%  
Source:  Information provided by the authorities.  
4.142.   Penetration rates of fixed -line telephony subscriptions declined to less than 7%, while that 
of fixed broadband has more than doubled from 9.3% to 20.3% ( Table  4.11). Mobile subscriptions 
declined from 182 per 100  inhabitants in 2016 to 132 in 2022 with lower points during the period 
but remain above the 100% threshold. This decline comes for the "on -net vs off -net" measure 
imposed by the Authority of Electronic Communications (AKEP), i.e.  a measure imposed to mobile 
operators not to differentiate calls on -net vs off -net, thereby removing the so -called "club effect". 
The number portability regulation (see below) also played a role in that evolution. Subscriptions of 
mobile broadband grew by a th ird from 60 to 84 per 100  inhabitants during the period, while the 
number of Internet subscriptions (fixed and mobile) per 100  inhabitants passed the 100%  threshold 
in 2022. Similar evolutions can be observed in terms of active users.  
4.143.   The fixed -line market  appears more concentrated, increasingly so for the share of the top 
provider (from 71% in 2015 to 80.1 % in 2021) but in a stable manner for the cumulative market 
share of the top three providers (around 92%). For mobile, and except for 2016, the share of  the 
top provider is below the 50% threshold, while that of the top three providers reached 100% in 
2017. The evolution of the concentration of the mobile broadband market appears comparable to 
that of mobile telephony, a market to which it is linked throu gh bundled subscriptions.  
4.144.   In the fixed broadband market, the level of concentration is low as there are many players 
and as no individual operator is in a dominant position in the retail market. This already low level of WT/TPR/S /449 • Albania  
 
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  concentration decreased notably dur ing the period both in terms of share of the top provider and of 
share of the top three providers.  
4.145.   Prices have notably decreased since the previous Review but cannot be fully compared to 
those described in that report58, the International Telecommunication Union (ITU) having since 
refined its methodology and decomposed its indicator in to four "baskets" instead of one single figure 
and taking into account the existence of bundled subscriptions. The 2021 prices expressed in  terms 
of a percentage of monthly gross national income (GNI) per capita stand at 1.51% for the fixed 
broadband bundle (5  gigabits), 1.72% of GNI per  capita for the low consumption bundle of minutes, 
SMS, and Internet (70  min + 20 SMS + 500 MB); 2.16% for "Data only (more than 2  GB)" package; 
and 3.45% for the "Mobile data and voice high -consumption basket (140  min + 70  SMS + 2  GB)" 
package. Like for penetration rates, these figures are in line with regional averages.  
4.146.   In terms of operators present in the di fferent markets, the number of companies providing 
value added services is relatively small though it grew from 34  companies in 2015 to 40  companies 
in June  2023. Regarding basic telecommunications services, there were 250  operators providing 
services from  fixed networks, up from 80 in 2015. This market is dual and composed, on the one 
hand, of a multitude of small -size actors with only a local dimension and, on the other hand, of 
seven large actors with a national dimension accounting for about 80% of the market. For fixed 
telephony the main actors are Albtelcom (former incumbent, merged in December  2022 with 
One Albania, owned by a consortium of two Turkish companies, sold in 2021 to a Hungarian 
company , and in which the Albanian State holds a minority sha re of 2.55%) with a market share of 
21% in 2021 ; Vodafone Albania (owned by Vodafone Group) with 20% ; followed by four 
Albanian -owned companies (i.e.  ASC (11%), Abissnet (8%), Digicom (4%), and Nisatel (4%)). The 
rest of the operators account for 33% of th e market. Vodafone Albania merged in 2020 with Abcom, 
a US-owned operator, which had a market share of 4% at the beginning of the period.  
4.147.   There were four mobile telephone operators at the beginning of the period, but one of them, 
Plus Communications, left the market in 2018. The three remaining operators during the period were 
Vodafone Albania, with a market share of 48% in 2021; One Telecommunications (formerly owned 
by a consortium between Deutsche Telekom and the Greek operator OTE and sold in 2021 to th e 
same Hungarian company, 4iG, that bought the majority of the shares of Albtelecom) with a market 
share of 39%, and Albtelecom with a market share of 13%. As a consequence of their common 
shareholding, One Telecommunications and Albtelecom were merged in 2022, leaving the Albanian 
mobile market with only two mobile operators. No figures are published yet on their combined 
market share.  
4.148.   For mobile broadband services (number of broadband active users in mobile), the leading 
operator is Vodafone Albania with a market share of 48% in 2022, followed by 
One Telecommunications (39%) and Albtelecom (13%). For fixed broadband, the leading companies 
are Vodafone Albania (22%), Albtelecom (19%), and ASC (10%).  
4.149.   The Albanian market for fixed broadband is characterized b y the presence of the two national 
backbones/operators, Albtelecom and ATU -Digicom, which have the largest share of the backbone 
market and operate both at wholesale and retail levels, and by the presence of almost 2,250  other 
registered telecommunications  operators of varying size, most of them small and operating in local 
areas. In June  2020, Albania adopted a national Masterplan for the Sustainable Development of 
Digital Infrastructure for Broadband. Its main targets for 2025 are a 100% penetration rate of 
broadband for households, businesses, and public institutions with 50%  having access to a speed of 
1 Gbps and 50% having access at least at a speed of 100  Mbps.  
4.150.   AKEP is the independent regulatory body in the field of electronic communications and postal  
services. It supervises the regulatory framework defined by Law  No. 9918/2008 on Electronic 
Communication in the Republic of Albania as amended, and the implementation of development 
policies defined by the Council of Ministers. Law  No. 9918 is largely ba sed on Directive 2002/21/EC.59 
This regulatory framework was described in detail in the last two previous TPR reports60 and did not 
substantially change during the period under review except for the adoption of a new National Plan 
 
58 WTO document WT/TPR/S/337/ Rev.1, 1 August  2016, para.  4.50. 
59 The law was also amended by Law  No. 102/2012 so as to transpose the 2009  EU telecom  package.  
60 WTO documents WT/TPR/S/337/ Rev.1, 1 August  2016, B ox 4.2, and WT/TPR/S/229/ Rev.1, 
5 May 2010, paras.  40-46, pp. 89-90. WT/TPR/S/ 449 • Albania  
 
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  for the development of br oadband in June  2020 by the Council of Ministers (Council of Ministers 
Decision No.  434/2020).  
4.151.   The MIE is now working closely with AKEP on the transposition of the 2018  European 
Electronic Communication Code into national legislation. A new electronic comm unication law is 
expected to be approved in 2023. The matters covered by the new law will include, inter alia, 
universal service s, consumer protection, quality of service, analysis of markets, and additional 
flexibility for spectrum management. As far as universal services are concerned, this transposition 
will bring changes to a regime otherwise unchanged since the last Review (see below).  
4.152.   Regarding the mobile interconnection regime and its implementation, there has been no 
change since the development de scribed in the previous Review,61 i.e. that t he obligation to offer 
access to Mobile Virtual Network Operators (MVNOs) was imposed on the two largest mobile 
operators in March  2010 but abolished in July  2012 since there had been no requests to establish 
MVNOs. This does not preclude new MVNOs establishing in the future to request the resolution of 
their mobile interconnection complaint by the regulator if they fail to agree on access with mobile 
network operators.  
4.153.   Fixed interconnection  is regulated by Law  No. 9918/2008 on Electronic Communications by 
Regulation on Access and Interconnection, by AKEP's decisions on Significant Market Power (SMP) 
operators, and by reference interconnection offers and interconnection agreements. This regulation 
was actively imp lemented during the period under review.  
4.154.   First, in 2017 AKEP conducted detailed market analysis on three broadband submarkets 
(Wholesale Local Access (WLA), Wholesale Central Access (WCA), and Wholesale High Quality Access 
(WHQA)); identified the incumbent  Albtelecom as the SMP operator in each of those markets; and 
imposed regulatory remedies.  For the WLA market, the remedies imposed were non -discrimination 
and transparency obligations and access to physical infrastructure obligation (pipelines/link pins f or 
points of interconnection with MSAN – i.e. a new switching technology for fixed networks  to connect 
broadband customers), control/adjustment of Local Loop Unbundling (LLU) tariffs, and pipeline 
access at the local level. For the WCA market, obligations imposed were non -discrimination, 
transparency of tariffs and services publication, obligation for Albtelecom to provide bitstream access 
to a minimum 12  points in the main regions of Albania, and control/adjustment of bitstream access 
tariffs. For the WHQA  market, the obligations imposed were non -discrimination, transparency of 
tariffs , and services publication; obligation for Albtelecom, identified as the SMP operator, to lease 
lines; liabilities for access to national/inter -urban and local lines (terminat ion segment); and 
control/adjustment of access tariffs in pipelines/leased lines. AKEP will re -examine the three 
submarkets of WLA, WCA, and WHQA in 2023.  
4.155.   For fixed call termination, AKEP launched another market analysis in 2018 and identified 
Albtelecom a nd 67  operators as SMPs on their own networks. The obligations imposed on these 
operators were transparency (but no Reference Interconnection Offer obligation), 
non-discrimination, provision of access, and price regulation.  
4.156.   Second, a new series of market a nalysis was launched in 2020 on "access and call 
origination" and "call termination for mobile services". On access and call origination, AKEP 
concluded that no SMP designation or remedies were needed in this market. On mobile call 
termination, AKEP decide d to develop a new cost model based on Bottom Up Long Run Incremental 
Cost (BULRIC) cost models.  
4.157.   As a result of the active implementation of the interconnection regime, the number of 
interconnection complaints submitted to the regulator fell from 35 betwee n 2010 and 2015 to 
6 between 2016 and 2022.  
4.158.   On facility sharing, the main regulatory development was the adoption of Law  No. 120/2016 
on the Deployment of High -speed Electronic Communications Networks and for Ensuring Rights of 
Way. The objective of this l aw is to reduce the cost of building broadband networks, facilitate and 
streamline the relevant procedures, and ensure rights of way for the deployment of broadband 
networks. The Law is based on Directive  2014/61/EU, which it approximates. Its main provisi ons 
 
61 WTO document WT/TPR/S/337/ Rev.1, 1 August  2016, B ox 4.2. WT/TPR/S /449 • Albania  
 
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  relate to access to and transparency of existing physical infrastructure, coordination and 
transparency of planned civil works, access to the centralized information system, permit granting, 
in-building infrastructure, and a dispute resolution body.  
4.159.   Regarding LLU, AKEP designated Albtelecom as an SMP operator for fixed local access and 
bitstream access, in 2014, 2016, and 2017, and has imposed on it the obligation to publish a 
Reference Unbundling Offer (RUO).  
4.160.   On number portability, AKEP Regulation No.  43/2016 on the Number Portability 
Implementation Method replaced Regulation No.  13/2010 on Number Portability, and introduced 
several operational changes and clearer rules on the portability obligations for operators compared 
to the regulatory regime descr ibed in the previous Review.62 During 2022, 44,243  mobile numbers 
and 911  fixed numbers were ported.  
4.161.   Regarding spectrum management, AKEP renewed in 2016 licences for two mobile operators, 
Telecom Albania and Vodafone Albania, for the bands 900  MHz and 1,80 0 MHz, for 15  years. 
In 2019, AKEP renewed the licence for the other mobile operator, Albtelecom, for the bands 900  MHz 
and 1,800  MHz, for 15  years.  One Communications and Vodafone Albania won spectrum auctions on 
the 800  MHz band in March  2019 and Septemb er 2019.  Council of Ministers Decision No.  300/2015 
authorized the removal of technological restrictions, so that operators can use all the authorized 
spectrum without technology restrictions for GSM  (2G), UMTS  (3G), and IMT/LTE  (4G). Mobile 
operators have  taken advantage of this opportunity for 4G.  
4.162.   A new National Frequency Plan was approved by Council of Ministers 
Decision  No. 1187/2020. This frequency plan is based on international best practices.63 The most 
important frequency bands for  5G cellular netwo rks (700  MHz, 3,400  MHz-3,800  MHz, and 26  GHz) 
are included in this plan. These bands are not yet tendered/licensed by AKEP, because the 700  MHz 
band is still under the administration of the Audiovisual Media Authority and used by media 
broadcasting operat ors. Expectations are that the 700  MHz band will be released within 2023. Bands 
3,400  MHz-3,800  MHz and 26  GHz are not allocated to operators and AKEP is cooperating with the 
MIE to define if there can be a tender on these bands in 2023 or 2024.  
4.163.   There was no change during the review period on the general licensing regime based on 
authorization adopted in 2008 and described in detail in the previous Review .64 
4.164.   Roaming fees were abolished by a Regional Roaming Agreement signed on 4  April 2019 
among the six  Western Balkan  countries. This agreement was progressively applied as of 
1 July 2019 and was fully implemented on 1  July 2021.  
4.165.   Finally, regarding universal service, pursuant to Law  No. 9918/2008, the services included 
in the scope of the universal service obl igations should be available to users across Albania 
regardless of geographic location, at a quality and under the conditions provided for in the regulatory 
acts adopted by AKEP, at affordable prices, and in line with national specific conditions. The scop e 
of the universal services is aligned with the EU  acquis  and include Internet services. During the 
period under review, as during the previous one (2010 -16), AKEP has considered that those prices 
were affordable and that the geographical coverage was suff icient, it has therefore not designated 
a universal service operator/undertaking.  
4.3.3   Postal and courier services  
4.166.   The MIE is in charge of postal issues , and AKEP is t he independent regulator of the sector  
(as it is for telecommunications ). 
4.167.   The postal sector is regulated by Law  No. 46/2015 on Postal Services, which transposes EU  
Directive  2002/ 39/EC on postal services as amended. The postal market is liberalized and as of 
January  2017, the reserved area was abolished. A policy paper, for the development  of the postal 
 
62 WTO document WT/TPR/S/337/ Rev.1, 1 August  2016, B ox 4.2. 
63 European Conference of Postal and Telecommunications Administrations  (CEPT)  Publications and ITU 
Radio Regulations, including ITU  WRC-19 (World Radiocommunication Conference 2019) decisions.  
64 WTO document WT/TPR/S/337/ Rev.1, 1 August  2016, B ox 4.2. WT/TPR/S/ 449 • Albania  
 
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  market in line with the EU  acquis  and aiming at the growth of e -commerce, was approved by the 
Council of Ministers in April  2022.65 
4.168.   Thirty -one private postal and courier services operators have been licensed/authorized by 
AKEP.66 The main ex press operators, including FedEx, DHL, UPS, and TNT, are present in Albania.  
4.169.   Tariffs for postal services are not regulated and set by the operators, except for universal 
services where tariffs are regulated by AKEP. Universal service tariffs must be afford able and 
cost-oriented and the universal service provider must keep separate accounts for the universal postal 
service. Albanian  Post joint stock company, a 100% state -owned company established in 1999, was 
designated as the operator for universal services  for a transitory period of five  years as of 2015 
by Law No. 46/2015.  
4.170.   After this transitory period, the law stipulates that AKEP will designate, every five  years, the 
universal postal service provider, based on a market analysis followed by a competitive p rocedure. 
If the market analysis concludes that there are at least two postal service providers that can provide 
the universal postal service, AKEP will call for a public tender in accordance with the postal law. As 
a result of the tender procedure, AKEP m ay appoint one or more providers to be designated as 
universal postal service provider in the whole territory, different designated providers for different 
universal postal services, or different designated providers for different areas of Albania. If afte r the 
market analysis there is only one operator fulfilling the criteria, this operator is designated by AKEP 
as the universal service provider without a competitive procedure. At the expiration of the transitory 
period in 2020, AKEP concluded that Albania n Post was the only operator fulfilling the conditions and 
redesignated it, in July  2020, as the universal service provider for a period of five  years.  
4.171.   Universal services cover the collection, sorting, transport, and distribution of postal items 
weighing u p to 2  kg; of postal packages weighing up to 10  kg; of insured and registered postal 
items; and of postal items received from EU  member  States weighing up to 20  kg. Staff of Albanian 
Post have a contract based on the labour, and labour relations are regula ted by collective agreement 
with the unions.  
4.172.   Albania also transposed EU  Regulation EU/2018/644 on cross -border parcel delivery services 
through the instruction of the Minister of Infrastructure and Energy  No. 5/2021 on the Approval of 
the Regulation on Cro ss-border Parcel Delivery Services. This instruction establishes two basic 
obligations for each parcel delivery service provider : (i) a requirement to provide certain information 
to AKEP, including legal, contact, certain operational, and sub -contractor in formation, as well as 
information regarding the services provided, complaint mechanism, and turnover; and (ii)  a 
requirement to provide AKEP with the public list of tariffs for the delivery of single -piece postal items, 
excluding correspondence (i.e.  posta l items not containing goods), which must be done by 
31 January of each calendar year.  
4.173.   AKEP then publishes online in a dedicated section of its official website the tariffs subject to 
transparency measures by the end of February each calendar year. On the basis of the public lists 
of tariffs, AKEP identifies, for each of the single -piece postal items listed in the law, the cross -border 
tariffs that it consider s necessary to assess. AKEP must complete the assessment report by 30  June 
each year and submit it to the MIE, which might, in turn, publish a summary of this assessment.  
4.3.4   Transport services  
4.3.4.1   Air transport  
4.174.   During the period under review, Albania, which has had no flag carrier since  2011, saw the 
emergence of two scheduled carriers, Albawings and Air  Alban ia. Albawings obtained its Aircraft 
Operating Certificate (AOC) in April  2016. It is 100% owned by Albanian private interests. In 2023, 
with three aircraft, it served 12  destinations in Italy and 1 in the United  Kingdom (London) from 
 
65 Council of Ministers Decision No.  207/2022.  
66 The list of postal and courier se rvice providers is published on the AKEP  website: 
https://akep.al/en/publications/records/ . WT/TPR/S /449 • Albania  
 
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  Tirana. It plans to op en routes from Tirana to three destinations in Germany: Frankfurt, Dusseldorf, 
and Hamburg. Its turnover for 2022 was ALL  2.5 billion.  
4.175.   The second carrier, Air  Albania, is a joint venture. It is 49% owned by Turkish  Airlines, with 
41% held by MDN, an Albani an private group and at 10% by Albcontrol, a state -owned company in 
charge of air navigation services provision in Albania. It started operations in 2019, and its AOC was 
issued on 25  March  2019. In 2023, with three aircraft, it served nine destinations (s ix in Italy, one 
in Germany (Dusseldorf), one in Türkiye (Istanbul), and one in the United  Kingdom (London)). It 
also provides cargo services and serves an additional 13  charter  destinations. Two more scheduled 
destinations are planned to start in Septembe r 2023. Its turnover for 2022 was ALL  3 billion.  
4.176.   There were no changes to the requirements on establishment of airlines during the period 
under review. These requirements are contained in three pieces of legislation: (i)  the Air  Code of 
Albania (Law  No. 96/2020); (ii)  Minister  Ordinance  No. 17/2010 on the Applicable Rules for the 
Operation of Air Services, as amended, which transposes EU  Regulation  1008/2008; and (iii)  Council 
of Ministers  Decision No.  1095/2020, which transposes EU  Regulation  2018/1139 and  its 
Implementing Rules. These rules impose a majority ownership and an effective control by Albanian 
interests.  
4.177.   There is no specific charter policy. Charter flights are all operated upon request and under 
an agreement between a tour operator and an airlin e. There is no specific policy for cargo flights, 
which abide by the same provisions of bilateral agreements as passenger flights. Regarding 
start-ups, new entrants have to be certified for technical, legal, and financial suitability. There are 
no restrict ions on routes, capacities, and pricing, other than those imposed by air service 
agreements. Domestic and foreign low -cost carriers are allowed to operate.  
4.178.   Regarding maintenance, repair, and overhaul (MRO) services, there are no repair stations 
certified b y the US Federal Aviation Administration (FAA) or by the European Aviation Safety Agency 
(EASA). Several computer reservation services providers (Amadeus, Galileo, and Sabre) operate in 
Albania. There is no specific regulation (including foreign exchange c ontrols) preventing or limiting 
the sales  by foreign airlines of their own tickets through various channels (e.g.  online, airport 
counters,  and city offices). This situation is not affected by bilateral agreements.  
4.179.   In terms of ground -handling services, the re is no legal monopoly. Self -handling, mutual 
handling, and third -party handling are allowed but do not exist yet in practice. 
EC Directive  No. 96/67/EC, which provides for the full liberalization of ground -handling services 
above a certain threshold of t raffic, has been fully transposed in Albania through 
Minister  Ordinance  No. 834/2018. In the absence of slot congestion, Albanian airports are not 
slot-coordinated. EU  Regulation  No. 95/93 on slot allocation in the airports has been fully transposed 
in Alb ania since  2011 (Minister  Ordinance  No. 84/2011).  
4.180.   Albania has two international airports in operation – one in Tirana and one in Kukës67 – and 
is in the process of building two others in Saranda and Vlora. Tirana handled 5.2  million  passengers 
(departures and arrivals) in 2022 and 2,603  tonnes including cargo and mail, compared to 
1.81 million  passengers and 2,324  tonnes handled in 2014. Kukës, whose operations started in 
April 2021, handled 5,108  passengers and no cargo in 2022.  
4.181.   During the IATA summer seas on 2022, Tirana International Airport was served by the 
2 national airlines and 28  foreign  airlines including 3  all-cargo  airlines, with a total of 
84 destinations. Two  airlines, Wizz  Air and Air Albania, served Kukës Airport during 2023.  
4.182.   Airports are publ icly owned and are managed by private operators through concessions. 
Tirana International Airport has been under concession since 2004, through a Concession Agreement 
approved by Law  No. 9312/2004. Parties of the agreement were, at the time, the Government  and 
the American -German consortium formed by HOCHTIEF AirPort GmbH  (HTA), Deutsche Investitions 
und Entwicklungsgesellschaft mbH (DEG), and the Albanian -American Enterprise Fund (AAEF). The 
duration of the concession is for 20  years.  
 
67 Kukës Airport opened in 2008 but was not operational until 2021.  WT/TPR/S/ 449 • Albania  
 
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  4.183.   As this agreement did  not allow for the operation of other airports in Albania than Tirana, 
for commercial flights, the Government revised the relevant conditions of the Agreement in 2016, 
by Law  No. 55/2016. Following the revised agreement, a new airport, Kukës International Airport, 
was built and started operation in the north of Albania, and the construction of another one in the 
south was initiated. The ownership of the concession of Tirana International Airport changed twice. 
It was first transferred to Real Fortress Priva te Ltd and then to the Kastrati Group.  
4.184.   In 2021, the Concession Agreement was revised again, to include new investment 
obligations for the Concessionary, reduce passenger charges , and prolong the duration of the 
concession from 20 to 35  years.  
4.185.   The concessio n for the airport was granted by Council of Ministers Decision No.  146/2019 to 
Kukës International Airport, which is owned by private Albanian interests, in the form of a ROT 
scheme for 35  years.  
4.186.   In 2018, the Government announced the construction of Vlora International Airport. Its 
construction started in 2021 and is expected to be completed by 2025. The concession was awarded 
in June  2021 (Council of Ministers Decision No.  325/2021) to a consortium consisting of Marco 
Construction SA, Yda Insaat Sanayi Ve Ticaret Anonim, Sirkety, and 2A Group SH.P.K in the form of 
a BOT scheme. The concession for a future airport in Saranda has not yet been awarded.  
4.187.   Table  4.12 provides the list of bilateral and plurilateral air services agreements signed by 
Albania and described according to the WTO Quasar methodology. Albania did not conclude any new 
bilateral air services agreements during the period under review.  
Table  4.12 List of bilateral and plurilateral air services agreements signed by Albania  
 
Date  
5th 
7th 
Cabotage  
Cooperation  
Designationa 
Withholdingb 
Pricingc 
Capacityd 
Exchange  
of statistics  
ALIe 
Austria (+ECAA)  18/03/1993  Y N N N M CoI-S FP FD Y 30 
Belgium (+ECAA)  22/01/2007  Y N N N M CoI-S FP FD Y 30 
Bosnia (+ECAA)  01/07/2004  Y N N N M CoI-S FP FD Y 30 
Brazil  11/04/2015  Y N N Y M PPoB-S FP FD Y 37 
Bulgaria (+ECAA)  12/09/2002  Y N N N M CoI-S FP FD Y 30 
China  28/03/1972  N N Y N S ..-S DA PD N .. 
Croatia (+ECAA)  20/05/2005  N N N N M CoI-S FP FD Y 24 
Czech  Republic (+ECAA)  20/10/1958  N N N N M CoI-S FP FD N 25 
Egypt  11/10/1995  Y N N Y S SOEC  FP PD Y 17 
France (+ECAA)  12/01/1989  N N N N M CoI-S FP FD N 25 
Germany (+ECAA)  28/03/1994  N N N N M CoI-S FP FD Y 24 
Greece (+ECAA)  16/07/1977  N N N N M CoI-S FP FD N 25 
Hungary (+ECAA)  16/01/1958  N N N N M CoI-S FP FD N 25 
Israel  18/09/2006  Y N N N S SOEC  DA PD Y 6 
Italy (+ECAA)  18/12/1992  N N N N M CoI-S FP FD N 25 
Kuwait, State  of 30/04/2012  Y N N N M PPoB-S DA PD Y 14 
Malaysia  12/09/1994  N N N N M SOEC  DA PD Y 4 
Netherlands (+ECAA)  20/09/1996  N N N N M CoI-S FP FD N 25 
North  Macedonia (+ECAA)  13/10/2005  Y N N N M CoI-S FP FD Y 30 
Oman  01/10/1999  N N N N M SOEC  DA PD N 5 
Pakistan  07/01/1972  N N N N  .. .. .. .. .. 
Poland (+ECAA)  08/07/1954  N N N N M CoI-S FP FD N 25 
Qatar  29/03/2012  Y N N N S SOEC  DA PD Y 6 
Romania (+ECAA)  20/02/1974  N N N N M CoI-S FP FD N 25 
Russian  Federation  23/06/1993  Y N N N S .. .. .. N .. 
Saudi  Arabia, Kingdom of  26/02/2014  Y N N N M SOEC -S FP PD Y 24 WT/TPR/S /449 • Albania  
 
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Date  
5th 
7th 
Cabotage  
Cooperation  
Designationa 
Withholdingb 
Pricingc 
Capacityd 
Exchange  
of statistics  
ALIe 
Serbia (+ECAA)  23/11/1956  N N N N S CoI-S FP FD N 25 
Singapore  19/01/2015  Y N N Y M PPoB-S FP FD Y 37 
Slovenia (+ECAA)  29/01/1993  N N N N M CoI-S FP FD Y 24 
Switzerland  10/09/2007  Y N N Y M PPoB-S DD FD Y 34 
Türkiye  30/08/2004  N N N Y M SOEC  DD PD Y 13 
United  Arab Emirates  30/10/2011  Y N N Y M SOEC  CoO FD Y 24 
United  Kingdom  30/03/1994  N N N N M CoI-S DD B1 Y 18 
United  States  24/09/2003  Y N N Y M SOEC  DD FD N 28 
EU member  States linked to 
Albania by ECAA 1st phase onlyf 01/12/2017  
(entry into force)  N N N N M CoI-S FP FD N 25 
EEA members linked to Albania by 
ECAA 1st phase onlyg 01/12/2017  
(entry into force)  N N N N M CoI-S FP FD N 25 
"Associated  parties" to ECAA linked 
to Albania by ECAA 1st phase onlyh 01/12/2017  
(entry into force)  N N N N M CoI-S FP FD N 25 
.. Not available.  
a S=Single; M=Multiple.  
b SOEC or S=Substantial Ownership and Effective Control; CoI=Community of Interest, 
PPoB=Principal Place of Business.  
c DA=Double Approval; DD=Dual Disapproval; FP=Free Pricing;  CoO=Country of Origin.  
d PD=Pre -Determination; B1=Bermuda  1, i.e.  post facto Determination; FD=Free Determination.  
e ALI=Air Liberalization Index (0=no liberalization at all; 50=full liberalization).  
f Cyprus, Denmark, Estonia, Finland, Ireland, Latvia, Lithuania, Luxembourg, Malta, Portugal, 
Slovak  Republic, Spain, and Sweden.  
g Iceland and Norway.  
h Montenegro and Kosovo. References to Kosovo shall be understood to be in the context of Security 
Council resolution  1244 (1999).  
Note:  ECAA =European Common Aviation Area Agreement.  
Source:  WTO Secretariat; and information provided by the authorities.  
4.188.   All countries now served by the two Albanian airlines, except the United  Kingdom and 
Türkiye, fall either under the European Common Aviation Area Agreement (ECAA) linking the 
EU member  States and EEA countries to "associated parties" in the Balkans, including Albania, or 
under a combination of the ECAA and a previous bilateral agreement whose more flexible/liberal 
provisions if any (e.g.  fifth freedom) prevail on those of the ECAA.68 The ECAA, which was signed in 
2006 and entered into force in 2017, has two tra nsitional phases and a final phase, which are 
increasingly liberal (multiple designation, free pricing and free capacity, and routes for third and 
fourth freedom for the first phase; fifth and seventh freedoms for the second phase; and cabotage 
and communi ty ownership for the final phase). The passage from phase to phase is conditioned upon 
the adoption of various elements of the EU aviation acquis . Albania is still in the first phase and is 
planning to accelerate the adoption of the acquis  so as to qualify  for the second phase. In terms of 
liberalization, the first phase is already quasi -equivalent (minus fifth freedom) to a so -called "open 
skies" agreement and has an Air Liberalization Index (ALI) of 24/50 alone and of 30/50 when 
combined with the fifth fr eedom granted by a previous bilateral agreement.  
 
68 ECAA, Article  28.1: "The provisions of this Agreement shall prevail over the relevant provisions of 
bilateral air transport agreements and/or arrangements in force between the Associated P arties on the one 
hand and the European  Community, an EC  Member State, Norway or Iceland on the other hand, as well as 
between Associated Parties ." ECAA, Article  28.2: "Notwithstanding paragraph 1, during the transitional periods 
referred to in Article  27, the provisions concerning ownership, traffic rights, capacity, frequencies, type or 
change of aircraft, code sharing and pricing of a bilateral agreement or arrangement in force between an 
Associated Party and the European Community, an EC Member State, N orway or Iceland or between two 
Associated Parties shall apply between the Parties thereto if such bilateral agreement and/or arrangement is 
more flexible, in terms of freedoms of the air carriers concerned, than the provisions of the applicable Protocol 
with respect to the Associated Party concerned."  
 WT/TPR/S/ 449 • Albania  
 
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  4.189.   Since the United  Kingdom is no longer an EU  member State, its relations with Albania are 
now regulated again in their totality by the bilateral agreement the two countries signed in 1994 and 
which has semi -liberal features (ALI of 18/50). The relationship with Türkiye is governed by a 
2004 air services agreement with an ALI of 13/50.  
4.190.   Other agreements are not actually used by the two Albanian airlines and constitute rather a 
portfolio of opportunities for them . Foreign airlines serving Tirana and Kukës airports generally do 
so under liberal terms since the ALIs of the agreements or of the combination of agreements 
regulating them range from 34/50 (Swiss and Edelweiss) to 13/50 (Pegasus from Türkiye) with the 
vast majority in the higher part of the range (Austrian and EasyJet 30; Wizz  Air, Aegean, Alitalia/iTA, 
Lot, Air Serbia, and Transavia  25; Fly Dubai and Lufthansa 24; and British  Airways  18). The AL Is of 
un-served agreements range from 4  (Malaysia) to 28  (United States). The width of this range can 
largely be explained by the various ages of the agreements and by the diverging aero -policies of the 
partners concerned.  
4.3.4.2   Maritime transport  
4.191.   In 2021 Albania had a fleet of 70  vessels under its national flag for a ca pacity of 
49,000  dead weight  tonnes  (DWT). Among these vessels , there are 15  under the Albanian flag that 
are beneficially owned by foreign interests. Albania also had a beneficially owned fleet of 54 vessels 
under foreign flags for a capacity of 92,000  DWT the same year.  
4.192.   These figures compare with 67  vessels under the national flag for a capacity of 
83,000  tonnes, none of which under foreign control , and a beneficially owned fleet of 30  vessels 
gauging 101,000  DWT in 2015. Like in 2015 the fleet under the national flag is quasi exclusively 
composed of general cargo ships, with no container  ships or bulkers.69 
4.193.   Registration policy is determined by the Maritime Code of Albania (Law  No. 9251/2004), 
Law No. 9254/2004 on the Ratification of the UN  Convention on the Conditions for the Registration 
of Ships, and Council of Ministers Decision  No. 462/2014 on the Register of Vessels in Albania. These 
regulations do not impose any nationality or ownership requirements/limitati ons to register a vessel 
under the Albanian flag. The only requirements are linked to technical and safety considerations.  
4.194.   According to the Maritime Code , the crew of Albanian flag ged vessels should be Albanian 
citizens, except for the ship master , who can be one of the EU  nationalities. This nationality 
requirement for the crew was introduced during the period under review by Law  No. 11/2021.  
4.195.   Cabotage traffic is reserved to the national flag. However , waivers can be granted to foreign 
flags, notably in cas e of reciprocity of international obligations, for technical reasons , or if the 
granting of the waiver is considered to be in the interest of the State .70 Albania does not maintain 
any unilateral cargo reservation to the benefit of its flag ; there are diff erent bilateral agreements 
with EU  member  States and non -EU member  States  that provide national treatment to Albanian 
flagged ships, but there are no cargo -sharing agreements. There is no differentiated competition 
regime covering maritime transport but th e general competition regime fully applies.  
4.196.   Pilotage  services  are compulsory  for all foreign  flagged vessels  over 500 GT, all Albanian  
flagged vessels  over 2,000  GT, and all vessels  over 500 GT engaged  in transport  of passengers.  
4.197.   There is no specific support policy for the Albanian flag, such as tonnage tax (instead of a 
profit tax), tax breaks , or second registry.  
4.198.   In 2017, Albania approved a regulation on the organiz ation and functioning of the flag state 
control71, which is designed to be fully aligned with the acquis  on flag state requirements and flag 
state control of the 2006 Maritime Labour Convention.  
 
69 UNCTAD, based on data provided by Clarkson Research.  
70 Albanian Maritime Code (Law  No. 9251/2004), Article  22. 
71 Council of Ministers Decision  No. 13/2017 for the Approval of the Regulation on the Functioning of the 
Port State Control transposed Directive  2009/16 including amendments of Directive  2013/38 and partially 
Directive  2017/2110, and Directive  2009/16/EC of the European  Parliament and of the Council of 23  April 2009 
on Port State Control (recast) amended by Directive  2013/38 and Directive  2017/2110.  WT/TPR/S /449 • Albania  
 
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  4.199.   The adoption of this regulation is part of ongoing efforts to  reduce the detention rate of 
Albanian -flagged vessels in order for the Albanian flag to leave the "Black" section of the White, 
Grey and Black (WGB) list of flag performance of the Paris Memorandum on Port State Control and 
for Albania to resume the count ry's application for membership to this Memorandum. The ranking 
of the Albanian flag within the black list has improved  from "high  risk" for the biennium 2018 -20 
with 74  inspections and 17  detentions, to "medium to high risk" for the biennium 2019 -21 with 
60 inspections and 11  detentions, to "medium risk" for the biennium 2020 -22 (published in 
July 2023) with 55  inspections and 8  detentions.72 Efforts of technical assistance by Norway are 
underway with the same objectives.  
4.200.   The largest number of ship arrival s by category is due to the ferry traffic between Italy and 
Albania. Dry breakbulk carriers constitute the second -largest category of ships received (665  arrivals  
in 2021 ), followed by container  ships (146), LPG carriers (133) , and liquid bulk carriers (10 2). 
Transshipment is negligible and the traffic is essentially bilateral. In 2022, international maritime 
traffic reached 3.4 million  tonnes of imports and 1.5  million  tonnes of exports. Maritime container 
traffic has nearly doubled since 2015 but remains relatively modest and quasi balanced: 
72,499  twenty  equivalent  units (TEU) of imports and 71,630  TEU of exports. This compares with 
1.9 million  tonnes of imports and 1.4  million  tonnes of exports in 2015 and to 42,673  TEU of imports 
and 43,027  TEU of exports the same year.  
4.201.   Albania has one main port, Durr ës, which accounts for more than 90% of the traffic , and 
three minor ports, Shengjin, Vlora , and Saranda. All four are state-owned and exploited through 
concessions by private  operators.  
4.202.   According to the authorities, the legislation currently applicable in the field of port services 
and financial transparency of ports partially complies with the provisions of the relevant 
EU regulation (Regulation  (EU) 2017/352) , and several regulations an d by-laws were adopted during 
the period under review to ensure compliance.73 Nevertheless , the EU  Commission considered in its 
2022 report that " [a]lignment with the acquis  on port s and enaction of legislation based on the 
EU Port Services Regulation stil l needs to be put in place".74 
4.3.4.3   Rail transport  
4.203.   Albania's railways system was essentially built after WWII with only one international 
connection, with Montenegro, opened in 1986 for freight transport. Its traffic and intermodal share 
declined considerably a fter the democratic transition. During the review period, rail freight traffic 
remained overall limited with some variation across time, while passenger traffic declined and fully 
ceased in  2022 ( Table  4.13). 
Table  4.13 Passenger and freight rail traffic and length of the operating 
network,  2015 -22 
 2015  2016  2017  2018  2019  2020  2021  2022  
Freight traffic (million  tonne  km) 23 9 25 20 43 26 25 20 
Passenger traffic (million  passenger  km) 7 3 2 3 2 1 1 0 
Lines operated  (km) 379 334 334 334 169 224 224 229 
Source:  INSTAT.  
4.204.   However, there is renewed interest from the Government for railways refurbishment and 
extension projects in Albania due to the low carbon footprint of that mode of transport, its 
externalities, and its importance for the completion of the Western  Balkans freight railways 
networks, with potential opportunities of funding from the European pre -accession and infrastructure 
funds in the context of the Trans -European Transport Network (TEN -T) corridors.  
 
72 For more elements o f the Paris  MoU, see: 
https://parismou.org/publications?field_news_category_target_id=8 . 
73 These are instructions of the Minister of Transport and Infrastructure re garding operating licences for 
national and international maritime transport for vehicles and passengers (No.  883/2018) and fuel supply for 
the consumption of ships in ports and in anchor (No.  913/2018).  
74 European Commission (2022), Albania  2022 Report , SWD (2022) 332  final, p. 104. WT/TPR/S/ 449 • Albania  
 
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  4.205.   The first step of this renewal was the project to rehabilitate the Tirana -Durrës (the 
country's  largest port) line with a loan of EUR  35.9 million from the E BRD and a EUR  35.5 million 
grant from th e Western  Balkans Investment Fund, as well as with Albanian budgetary allotments. 
Construction works started in 2021. This project will include the construction of a new line linking 
Tirana to Tirana International Airport.  
4.206.   Following a joint declaration by the European  Commission and six Western  Balkans prime 
ministers in April  201575, the TEN -T European railway corridors map was amended by 
EU Regulation  2016/758/EU  so as to include the complete rehabilitation of the link between Tirana 
and Podgorica, Monten egro. This project will involve the complete overhaul of 120.2  km of railway 
line and the construction of 13  railway stations for an overall estimated cost of EUR  356 million. A 
Western  Balkans Investment Fund loan of EUR  4.5 million for 2018 -21 was approv ed in 
December  2016 to finance the preparation of the detailed design and the tender document for the 
rehabilitation works. Construction works are planned to take place between 2023 and 2028.  
4.207.   In regulatory terms, the first major development for the sector during the period under 
review was the adoption of Law  No. 142/2016 on the Railway Code of the Republic of Albania. This 
law outlines the rules applicable to the management of railway infrastructure and to rail transport 
activities of the railway undertaki ngs and operators. This law is partially aligned with 
EU Directive  2012/34/EU  establishing a single European railway area, which is a recast of the 
EU third railway package. The Railway Code is also partially aligned with three directives of the 2016  
fourth EU railway package  on the European Union Agency for Railways (Regulation ( EU) 
No. 2016/796), interoperability (Directive  (EU) 2016/797), and railway safety (Directive  
(EU) 2016/798). The Law was followed by Council of Ministers establishing a railway licensing 
authority.  
4.208.   The second major regulatory development was the adoption of Law No.  90/2021 on the 
Separation of Albania Railways Company SA, which unbundled the former monopoly in four different 
companies: (i)  an infrastructure manager; (ii)  a railway undertaking for passenger transport; 
(iii) a railway undertaking for freight transport; and (iv)  a railway undertaking for rolling stock. In 
addition, the Law sets procedures for the establishment of railway joint -stock companies. Three 
2021 laws established a railway regulatory authority, a national authority for the investigation of 
railway and maritime accidents and incidents, and a railway safety authority.76 Albania is planning 
to achieve the transposition of the EU  railway acquis  by the adop tion of about 20  EU regulations 
(including EU  Commission implementing regulations) and directives over the years  2023-25, most 
of which are of a technical nature. However, in its  2022 Albania pre -accession  report, the 
EU Commission considers that "Albania [still] needs  … to complete the institutional framework of the 
four new rail companies".77 
4.3.4.4   Road transport  
4.209.   Albania has a trucking fleet of 15,100  lorries and 1,793  trailers in 2023.78 The number of 
buses79 is 8,285 for the same year and the number of vehicl es certified for intercity transport 
is 1,812. There are no data publicly available on the volume of road freight and passenger transport 
from either the national Institute of S tatistic s (INSTA T)80 or Eurostat .81 
4.210.   Domestic transport of passengers is regulat ed through licences granted at the municipal 
level, except for occasional transport services , which are regulated at the level of the region/district. 
There are no limitations for operating in the regular or occasional transport of passengers or the 
 
75 European Commission (2015), "Western  Balkans 6 Meeting in Brussels", 21  April. Viewed  at: 
https://ec.europa.eu/commission/presscorner/detai l/fr/STATEMENT_15_4826 . 
76 Respectively, Laws  No. 89/2021, No.  91/2021, and No.  88/2021.  
77 European Commission (2022), Albania  2022 Report , SWD  (2022) 332  final, p.  103. 
78 INSTAT, Road Transport Statistics, Second Quarter,  2023. Viewed  at: 
https://www.instat.gov.al/en/themes/industry -trade -and-services/transport -accidents -and-characteristics -of-
road-vehicles/publikimet/2023/road -transport -statistics -q2-2023/ . 
79 Defined as vehicles of more nine seats, including that of the driver.  
80 INSTAT, Transport  Statistics, Reference Metadata in Euro SDMX Metadata Structure (ESMS) . 
Viewed  at: https://www.instat.gov.al/media/9221/46transport_statistics_final_en.pdf . 
81 EUROSTAT, Enlargement Countries – Transport Statistics . Viewed  at: 
https://ec.eu ropa.eu/eurostat/statistics -explained/index.php?title=Enlargement_countries_ -
_transport_statistics&curid=32181&oldid=606238 . WT/TPR/S /449 • Albania  
 
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  transp ort of goods. For intercity (or inter -urban) transport of passengers and on regular bus lines 
between districts, only one company for the respective regular line is allowed. One company can 
cover more than one regular line. For social reasons, road passenger tariffs are subject to a 
maximum pricing obligation set by Council of Ministers Decision  No. 66/2007.  
4.211.   Domestic transport of goods for third parties and rentals are regulated through licences 
granted at the municipal level, except for the transpor t of hazardous goods and transport by 
non-standard vehicles (for which licences are issued by the General Directorate of Road Transport 
Services). This licensing regime is defined by Law  No. 8308/1998 on Road Transport, as amended, 
and Instruction  No. 15 o f 24 July 2007 on Criteria and Procedures for Issuing Licences, 
Authorizations and Certificates for Activities in the Road Transport Sector. There is no capacity 
limitation and/or management in place, nor any price regulation on domestic road freight trans port. 
4.212.   The criteria for licensing for domestic transport of both passengers and goods are based on 
good reputation , adequate financial situation , professional competence , and an effective and stable 
establishment in Albania. Licences are not transferable fr om the holder to another operator. Licence 
holder s engaged in an activity for which they are licensed or authorized may enter into a 
sub-contractual agreement with a third party, but not for more than  35% of the activity. The holder 
of the licence or autho rization is liable for meeting the licence/authorization conditions, and this 
liability also extends to the activity performed by the sub -contractor. There are no restrictions on 
the establishment of foreign -owned trucking or passenger transport companies.  
4.213.   For international road freight and passengers transport , the licensing regime is defined by 
two recent legal texts , respectively, Instruction  No. 8 of the Minister of Infrastructure and Energy of 
31 December  2020 on the Criteria, Rules and Documentation f or Issuing Licenses and Certificates 
for the Exercise of Activity in the International Road Transport of Goods , and Instruction  No. 8 of 
19 December  2019 for Criteria, Rules and Documentation for Issuing Licences, Authorizations and 
Certificates for the Ex ercise of Activity in the International Road Transport of Passengers. These 
regulations transpose the relevant EU  acquis.82 These guidelines have set the new formats of 
documents for the international transport of passengers and goods, licences, certified copies of 
licences, certificates for international transport for own account, and authorizations for operating in 
the international transport of passengers on regular lines.  
4.214.   For international passenger transport , the licensing regime applies to all entitie s engaged or 
intending to engage in the activity of international road transport of passengers for third parties or 
for hire and on their own account, inside and outside of Albania, by entities established/located in 
Albania or in a third country, using ve hicles that are registered, suitable , and intended to transport 
more than nine persons, including the driver. Licensing and/or authorization is mandatory for entities 
that provide regular services , regular specialized services , and on -demand services. This  licence is 
also mandatory for entities that carry out activities in international transport on their own account. 
The licensing criteria are based on good reputation, financial stability, professional competence , and 
an effective and stable establishment in Albania. There is no capacity limitation and/or management 
and no price regulation on international road passenger transport.  
4.215.   The scope of the licensing requirements for road freight transport is narrower than for 
passenger transport , as it applies only  to carriers  resident in Albania . The licensing criteria are based 
on good reputation, financial stability, professional competence , and an effective and stable 
establishment in Albania. There is no capacity limitation and/or management and no price regula tion 
on international road freight transport.  
4.216.   During the period under review , Albania signed nine new bilateral road freight transport 
agreements with Montenegro, Cyprus, Serbia, Belgium, Bosnia  and Herzegovina, Spain, Latvia, 
Estonia, and Kosovo83, four o f which (with Cyprus, Latvia, Estonia , and Kosovo84) deal with both 
passenger and freight transport. These agreements add to the 20 agreements signed earlier with 
 
82 For freight transport: Regulation  (EC) No.  1071/2009; Regulation  (EC) No.  1072/2009; 
Directiv e 2006/1/EC; and for passenger transport: Regulation  (EC) No.  1071/2009; Regulation  (EC) 
No. 1073/2009; Regulation of the Commission  (EU) No. 361/2014.  
83 References to Kosovo shall be understood to be in the context of Security Council 
resolution  1244 (1999). 
84 References to Kosovo shall be understood to be in the context of Security Council 
resolution  1244 (1999).  WT/TPR/S/ 449 • Albania  
 
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  Poland  in 1990; Italy, Romania, the Russian  Federation, and the United  Kingdom in 1993; Croatia, 
Denmark, and the Netherlands  in 1994; Sweden  in 1995; Germany and Hungary  in 1996; Greece  in 
1997; North  Macedonia  in 1998; Bulgaria, France, and Luxembourg  in 1999; Türkiye  in 2000; 
Austria  in 2005; Slovenia  in 2007; and Switzerland  in 2008.  
4.217.   Albania is also a member of the plurilateral European Council of Transport Ministers  (ECMT) 
agreement and benefits from its plurilateral quotas (Table  4.14).85 
Table  4.14 ECMT quotas by environmental categories of lorries  
Green categories  Trucks  (no.)  
Euro 1 3 
Euro 2 5 
Euro 3 30 
Euro 4 127 
Euro 5 408 
Euro 6 341 
Total  914 
Source:  Information provided by the authorities.  
4.3.5   Tourism services  
4.218.   Tourism is an increasingly important economic sector in Albania. The Government promotes 
public -private partnerships for strategic investments, particularly by well -known international brands 
of quality hotels, so as to make tourism in Albania mor e upmarket.  
4.219.   The number of inbound tourists grew by about  35% between  2015 and 2021 (Table  4.15). 
European tourists represent more than 90% of these arrivals, followed distantly by tourists from the 
Americas. Leisure tourism also represents most of the tour ism activities and was much more affected 
by the COVID -19 pandemic than was business tourism. In terms of modes of transport, arrivals by 
air have nearly doubled, but remain a marginal share of total arrivals, like arrivals by seas, which 
have remained mor e or less stable. Road transport is the dominant mode of arrival, which is logical 
since national statistics for 2021 indicate that 46.4% of the foreign tourists came from Kosovo86, 
9.8% from North  Macedonia, 5.6% from Montenegro, and 4.9% from Greece, all  of which share a 
common border with Albania.  
Table  4.15 Main indicators of the tourism sector,  2015 -21 
 2015  2016  2017  2018  2019  2020  2021  
Inbound tourism total 
arrivals  ('000)  4,131  4,736  5,118  5,927  6,406  2,638  5,689  
Arrivals by region of origin ('000)  
Europe  3,799  4,485  4,687  5,332  5,796  2,817  5,173  
Americas  97 104 124 149 157 30 116 
Others  278 146 308 448 473 12 400 
Arrivals by purpose ('000)  
Personal  4,189  4,677  5,050  5,840  6,325  2,543  5,588  
Business and professional  42 59 69 88 101 115 100 
Arrival by mode of transport ('000)  
Road 3,519  4,008  4,147  4,796  5,134  2,324  4,718  
Air 401 457 578 692 784 270 765 
Water  211 276 393 439 468 64 206 
Tourism expenses (USD  million)  
Travel  1,499  1,693  1,943  2,186  2,329  1,134  2,257  
Transport  114 128 107 120 129 109 223 
 
85 For more elements of the ECMT quotas system, see WTO document S/C/W/324, 29 October  2010, 
pp. 36-37 and 66.  
86 References to Kosovo shall be understood to be in the context of Security Council 
resolution  1244 (1999).  WT/TPR/S /449 • Albania  
 
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   2015  2016  2017  2018  2019  2020  2021  
Establishments (number)  .. .. .. 1,021  1,126  1,237  .. 
Beds (number)  29,903  41,386  .. 69,395  77,974  82,334  85,403  
Occupancy rates/bed (%)  .. .. .. 19.4 24.4 10.5 17.0 
Average duration of stay  .. .. .. 2.4 2.6 2.3 2.6 
Total employment  ('000) of 
whicha 29.0 39.2 43.6 46.7 52.0 42.4 .. 
Accommodation services  21.8 30.0 33.4 35.6 40.7 32.8 .. 
Travel agencies and other 
reservation services  5.2 7.7 8.3 9.2 8.7 8.1 .. 
Other tourism industries  1.0 1.5 1.9 1.5 2.6 1.7 .. 
Share of GDP of hotels and 
restaurants (%)  2.8 2.2 2.4 2.7 2.0 2.7 .. 
.. Not available.  
a Figures do not include employment in food and beverage services or passenger transportation.  
Source:  UNWTO  Statistics; and INSTAT (for Shares of GDP).  
4.220.   Total tourism expenditures (travel  plus transport) grew by 54% during the period. While the 
number of establishments recorded by the United  Nations World Tourism Organization ( UNWTO ) has 
only marginally gro wn, the capacity in terms of beds nearly trebled from 29,903  beds in 2015 to 
85,403  beds in 2021.87 However, the rate of occupancy remains low, below the 25%  mark. Finally , 
in terms of employment, the figures provided by UNWTO are probably largely underest imated since 
they do not provide data on the food and beverages serving services. They nevertheless show a 
growth of nearly 50% during the period. The share of hotels and restaurants in GDP grew over the 
period but represents only a part of tourism activit ies, for which there exist no detailed national GDP 
data. 
4.221.   Another classical gauge of tourism activities, used by the Government itself88, is the data of 
the World Tourism and Travel Council (WTTC), which are based on a more extensive delimitation of 
touris m activities than that of the UNWTO. According to these statistics, the overall contribution to 
GDP forecasted to be around 22% in 2023, a decline from the more than 25% in 2017 and 2018. In 
terms of employment, these data indicate that the share of direct  employment in the tourism sector 
was 7.9% in 2021, lower than prior to the COVID -19 pandemic, while direct and indirect employment 
stood around 21.5% during the review period, with a dip following the pandemic ( Table  4.16). 
Table  4.16 Contribution of tourism to GDP, employment, and investment,  2017 -23 
 2017  2018  2019  2021a 2022  2023  
(forecast)  
Direct contribution to GDP  (%) 8.50 8.80 8.80 .. .. .. 
Overall contribution to GDP  (%) 26.20  27.20  20.30  17.40  21.60  22.00  
Direct employment  
(% of total employment)  7.70 8.90 8.40 7.90 .. .. 
Direct and indirect employment 
(% of total employment)  21.40  21.10  21.30  20.00  21.20  21.50  
Tourism investments as % of total 
investment  .. 7.50 .. 7.50 .. .. 
.. Not available.  
a The year  2020 does not appear in this table as the COVID -19 pandemic made it atypical.  
Source:  Compiled by the Secretariat, based on WTTC data.  
4.222.   Albania adopted in 201989 its National Strategy for Sustainable Tourism Development 
2019-2023, aiming to move away from a beach -based mass market model towards one that is more 
diverse and sustainable, including archaeology and culture. However, its implementation was 
disrup ted by the onset of the COVID -19 pandemic and its objectives were recently prolonged and 
 
87 World Tourism Organization . Viewed  at: https://www.unwto.org/ . 
88 Notably in its 2018 National Strategy for Sustainable Tourism Development  2019-2023, in the 
2019 factsheet of AIDA on the tourism sector, and in its National Strategy for Development and European 
Integration of October  2022.  
89 Council of Ministers Decision No.  413/2019.  WT/TPR/S/ 449 • Albania  
 
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  updated by the more generic National Strategy for Development and European Integration of 
October  2022. This interest for the sector in a global strategy can be explai ned by the fact that,  
according to the World Economic Forum's Travel and Tourism Development index, Albania is one of 
the three European countries, together with Croatia and Montenegro, with the highest dependence 
on tourism.90 
4.223.   The Ministry of Tourism and Environment is in charge of the regulation of the sector. Albania 
has undertaken full commitments under the GATS on all three tourism sectors (hotels and 
restaurants, travel agencies and tour operators, and tourist guides). It has therefore, no GATS type 
restrictions in its legislation. The main law regulating tourist activities is Law  No. 93/2015 on 
Tourism. It has been amended twice91, first to incentivize investments for brand -name hotel firms 
building 4 - or 5-star accommodations, and second to deprive a ll persons who have been convicted 
of criminal offenses from the support and facilities provided for investors. Law  No. 43/2020 on 
Coastal Tourism Activities is more specific, as it  determines the rules applicable to vessels used for 
touristic and entertai nment purposes and to their onshore infrastructure, as well as the institutional 
responsibilities for this field. Law No.  93/2015 also creates the notion of "tourism development 
priority areas", which are proposed by the ministry in charge of tourism and approved by the National 
Council of the Territory. They can be geographical or thematic. To date , four such areas h ave been 
created: the Albanian Alps, the "New  South", ports and marinas, and Tirana. In those zones, 
state-owned immovable property can be made available to investors and in the case of coastal zones 
permanent piers or ports will be built by the State , and shores along the coast or lakes will be made 
available for tourism investments.  
4.224.   More specifically, new accommodation facilities built by "four - and five-stars hotels with 
special status", i.e.  hotel firms holding an internationally recognized and register ed trademark, 
benefit from four types of incentives: (i)  exemption from corporate income tax for a period of 
10 years starting from the commencement of their activity; (ii)  a reduced VAT rate  (6%) for all 
services delivered on their facilities92; (iii)  exemption from infrastructure impact tax; and 
(iv) exemption from the tax on property for accommodation facilities.  
4.225.   Certified agrotourism providers, a subsector that the Government wants to develop, benefit 
from three types of advantages: (i)  a reduced profit  tax rate set at  5% (Section  3.1); (ii)  a reduced 
VAT rate of  6% for the supply of accommodation and food services (Section  3.1), except for 
beverages; and (iii)  an exemption from infrastructure impact tax.93 
4.226.   In addition , Law No. 55/2015 on Strategic Inves tments and Law  No. 93/2015 on Tourism 
foresee two regimes for the tourism sector. First, for tourism strategic investment over 
EUR 50 million, the Government can lease public land for a period up to 99  years for a symbolic 
tariff of EUR  1. Second, for stra tegic investment over EUR  5 million and creating more than 80  jobs, 
the Government can provide for free all necessary supporting and technical infrastructure, such as 
roads, water electrical supply, and sewage system.  
4.227.   Finally, in order to foster the develo pment of maritime tourism, imports of yachts and other 
watercraft used for tourist purposes, pleasure, and entertainment, not older than 20  years, included 
in Code  8903 of the Combined Nomenclature of Goods, are exempted from  VAT.94 
4.3.6   Distribution services  
4.228.   The wholesale and retail services sector is important to the Albanian economy since it 
accounts for about 1 1% of GDP , with the share not significantly moving during the review period . 
There are no publicly available employment data di saggregated at the sector level.  
4.229.   In 2022, the distribution sector counted 7,324  enterprises active in wholesale trade (except 
motor vehicles), 31,687  enterprises active in retail trade (except motor vehicles), and 
4,874  enterprises active in wholesale and retail trade and repair of motor vehicles. Small private 
 
90 World Economic Forum, Travel & Tourism Development Index 2021 . Viewed  at: 
https://www.weforum.org/reports/travel -and-tourism -development -index -2021.  
91 By-Laws No. 114/2017 and  No. 101/2018.  
92 Law No. 92/2014  on Value Added Tax, Article  49, point  3. 
93 Law No. 9632/2006 on the Local Tax System, Article  27, point  8. 
94 Law No. 92/2014 on Value Added Tax, Article  56, point  44. WT/TPR/S /449 • Albania  
 
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  shops dominate the retail sector, but supermarket chains, some foreign (Conad and SPAR) and some 
local (Big Market, Eco Market, and Extra), have gained market share over the last 10  years. Many 
international brands, e.g.  in the clothing and DIY segments, have entered the market either directly 
or through franchises. Online sales are still an emerging sector.  
4.230.   The Ministry of Finance and Economy is responsible for policies regarding distribution 
service s. Municipalities also play a role in urbanism and zoning questions.  
4.231.   Albania undertook full commitments under the GATS for all subsectors of distribution 
(commission agent, wholesale, retail, and franchising services) except for pharmaceutical products 
where "licensing is done only in cooperation with an Albanian professional whether this professional 
is a partner or an employee in the foreign company".95 Albania therefore has no GATS limitations 
(such as economic needs tests, and limitation of number of su ppliers) regarding distribution services.  
 
 
95 Schedule of Specific Commitments, WTO  document  GATS/SC/131, 22  November  2000, pp.  22-23. WT/TPR/S/ 449 • Albania  
 
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  5  APPENDIX TABLES  
Table A1. 1 Merchandise exports by HS  section and major HS  chapter/subheading, 
2015 -22 
HS section/chapter/  
subheading  2015  2016  2017  2018  2019  2020  2021 2022  
Total exports  
(EUR  million)  1,738  1,770  2,035  2,422  2,428  2,192  3,013  4,071  
 (% of total)  
1-Live animals and products  1.5 1.9 2.0 2.0 2.1 2.5 2.3 1.9 
2-Vegetable products  4.4 5.1 5.0 4.6 5.4 6.8 5.3 4.9 
HS 07 Edible vegetables and certain 
roots and tubers  1.7 2.2 2.6 2.4 2.6 3.3 2.4 2.3 
HS 0702 Tomatoes, fresh or chilled  1.2 1.4 1.5 1.4 1.4 1.5 0.9 0.8 
HS 0707 Cucumbers and gherkins, 
fresh or chilled  0.2 0.3 0.4 0.4 0.4 0.5 0.6 0.6 
HS 0709 Other vegetables, fresh or 
chilled  0.1 0.2 0.3 0.3 0.5 0.8 0.6 0.5 
3-Fats and oils  0.0 0.1 0.1 0.1 0.1 0.1 0.1 0.1 
4-Prepared food, beverages and tobacco  2.8 3.4 3.9 3.7 4.3 5.0 4.3 3.8 
5-Mineral products  26.6 19.2 15.8 18.3 16.9 14.6 18.8 22.2 
HS 27 Mineral fuels  18.6 11.3 8.8 13.4 11.2 8.4 13.7 17.1 
HS 2716 Electrical energy  1.7 2.2 0.8 4.0 1.1 1.3 5.8 7.3 
HS 2709 Petroleum oils and oils 
obtained from bituminous minerals, 
crude  13.0 8.0 5.3 6.7 7.3 4.9 6.0 7.2 
HS 26 Ores, slag and ash  4.9 5.1 4.2 2.5 3.0 3.0 2.6 3.4 
HS 2610 Chromium ores and 
concentrates  3.8 4.8 3.9 1.9 1.8 1.3 1.3 2.4 
HS 2603 Copper ores and 
concentrates  0.5 0.0 0.0 0.3 0.8 1.2 0.9 0.7 
6-Chemicals and products thereof  0.9 0.9 0.9 1.1 1.5 1.6 1.6 1.8 
7-Plastics and rubber  0.7 0.8 0.8 0.9 1.1 1.2 1.3 1.4 
8-Raw hides and skins; leather, furskins 
and articles thereof  1.2 1.1 1.1 0.9 0.8 0.7 0.6 0.6 
9-Wood, cork, straw  1.0 0.9 0.9 0.9 1.0 1.2 1.0 1.0 
10-Pulp of wood; paper and paperboard  2.4 2.3 2.2 2.0 2.2 2.0 1.7 1.9 
11-Textiles and textile articles  18.9 22.2 22.0 20.2 20.5 20.9 16.6 14.4 
HS 62 Articles of apparel and clothing 
accessories, not knitted or crocheted  11.1 12.9 12.6 11.1 10.8 10.8 8.1 7.0 
HS 61 Articles of apparel and clothing 
accessories, knitted or crocheted  7.1 8.6 8.5 8.2 8.6 8.4 7.3 6.3 
12-Footwear, headgear, etc.  18.2 21.6 21.0 19.6 19.1 16.8 13.9 13.5 
HS 64 Footwear, gaiters and the like; 
parts of such articles  18.0 21.3 20.7 19.4 18.8 16.6 13.7 13.3 
HS 6406 Parts of footwear (including 
uppers whether or not attached to 
soles other than outer soles)  7.2 8.4 8.5 8.4 8.7 8.0 7.6 7.5 
HS 6403 Footwear with outer soles 
of rubber, plastics, leather or 
composition leather and uppers of 
leather  8.1 9.8 9.7 8.7 8.5 7.4 5.1 4.8 
13-Articles of stone, plaster, cement  0.4 0.7 0.8 0.7 0.8 0.8 0.8 0.8 
14-Precious stones and metals  0.3 0.3 0.3 0.3 0.4 0.5 0.4 0.3 
15-Base metals and articles thereof  14.1 12.4 15.2 16.5 14.4 14.5 20.9 20.9 
HS 72 Iron and steel  7.8 6.4 8.3 10.5 8.5 7.8 13.1 12.9 
HS 7202 Ferro -alloys  2.8 2.9 3.7 5.0 3.0 2.2 5.8 6.3 
HS 7214 Other bars and rods of iron 
or non -alloy steel, not further 
worked than forged, hot -rolled, 
hot-drawn or hot -extruded  3.4 2.7 3.9 5.1 5.2 4.8 5.6 4.9 
HS 76 Aluminium and articles thereof  2.2 2.6 2.9 2.5 2.2 2.4 3.3 3.6 
HS 7601 Unwrought aluminium  1.1 1.2 1.4 1.1 0.9 1.2 1.6 1.5 
HS 7604 Aluminium bars, rods and 
profiles  0.4 0.6 0.7 0.6 0.6 0.6 0.9 1.2 
HS 73 Articles of iron or steel  0.9 0.9 1.1 1.0 1.3 1.8 1.8 2.1 
HS 7308 Structures and parts of 
structures  0.1 0.3 0.4 0.4 0.6 0.8 0.8 1.0 
HS 7314 Cloth, grill, netting and 
fencing, of iron or steel wire; 
expanded metal of iron or steel  0.3 0.3 0.3 0.3 0.4 0.5 0.5 0.6 
16-Machinery, electrical equipment  3.8 3.8 4.6 5.1 6.1 6.9 6.8 7.0 WT/TPR/S /449 • Albania  
 
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  HS section/chapter/  
subheading  2015  2016  2017  2018  2019  2020  2021 2022  
HS 85 Electrical machinery and 
equipment and parts thereof; sound 
recorders and reproducers, television 
image and sound recorders and 
reproducers, and parts and accessories 
of such articles  2.9 2.7 3.4 3.6 4.0 5.2 5.8 5.8 
HS 8544 Insulated wire, cable and 
other insulated electric conductors  0.4 0.6 1.0 1.2 1.4 2.1 3.0 3.0 
HS 84 Machinery and mechanical 
appliances; parts thereof  0.9 1.1 1.3 1.5 2.0 1.7 1.1 1.2 
17-Transport equipment  0.6 0.9 0.9 0.7 1.0 1.3 1.0 1.2 
18-Precision equipment  0.3 0.3 0.3 0.3 0.3 0.3 0.2 0.2 
19-Miscellaneous manufactured articles  1.8 2.1 2.1 1.9 2.3 2.3 2.2 2.0 
20-Works of art, etc.  0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 
Other  0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 
Source:  WTO Secretariat calculations, based on data provided by the authorities.  
  WT/TPR/S/ 449 • Albania  
 
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  Table A1. 2 Merchandise imports by HS  section and major HS  chapter/subheading, 
2015 -22 
HS section/chapter/  
subheading  2015  2016  2017  2018  2019  2020  2021  2022  
Total imports (EUR  million)  3,900  4,226  4,667  5,030  5,283  4,905  6,547  8,007  
 (% of total)  
1-Live animals and products  3.5 3.1 3.4 3.3 3.5 3.5 3.3 3.4 
2-Vegetable products  5.2 4.7 4.2 4.4 4.3 4.8 3.8 3.3 
3-Fats and oils  1.2 1.1 1.0 0.9 0.8 1.0 0.8 0.9 
4-Prepared food, beverages and tobacco  7.9 8.4 8.4 8.0 8.4 9.0 8.2 8.1 
HS 22 Beverages, spirits and vinegar  1.8 1.9 2.1 2.1 2.1 2.1 2.1 2.0 
5-Mineral products  11.1 8.6 10.6 10.7 11.9 9.1 13.2 18.1 
HS 27 Mineral fuels, mineral oils and 
products of their distillation; bituminous 
substances; mineral waxes  10.4 8.1 9.9 10.1 11.3 8.5 12.6 17.4 
HS 2710 Petroleum oils and oils 
obtained from bituminous minerals, 
other than crude  6.4 5.3 4.5 6.2 5.9 4.5 5.4 7.7 
HS 2716 Electrical energy  2.5 1.5 3.7 2.0 3.7 2.5 4.8 6.6 
HS 2711 Petroleum gases and other 
gaseous hydrocarbons  1.0 0.9 1.2 1.3 1.1 1.1 1.7 2.4 
6-Chemicals and products thereof  9.4 9.2 9.2 8.6 9.1 10.1 9.4 7.8 
HS 30 Pharmaceutical products  3.5 3.7 4.0 3.5 3.6 4.1 3.9 3.0 
HS 3004 Medicaments  3.1 3.3 3.5 3.2 3.2 3.7 2.9 2.5 
7-Plastics and rubber  4.4 4.6 4.7 4.9 4.4 4.8 4.9 4.5 
HS 39 Plastics and articles thereof  3.6 3.9 4.0 4.1 3.6 3.9 4.0 3.8 
8-Raw hides and skins; leather, furskins and 
articles thereof  2.9 3.0 3.0 2.9 2.7 2.1 1.9 1.8 
9-Wood, cork, straw  1.4 1.6 1.4 1.5 1.5 1.5 1.5 1.4 
10-Pulp of wood; paper and paperboard  2.6 2.5 2.4 2.5 2.5 2.5 2.1 2.3 
11-Textiles and textile articles  10.1 11.0 11.3 11.2 11.0 10.4 9.5 8.9 
HS 61 Articles of apparel and clothing 
accessories, knitted or crocheted  2.3 2.6 2.7 2.7 2.7 2.5 2.5 2.2 
HS 62 Articles of apparel and clothing 
accessories, not knitted or crocheted  2.5 2.6 2.6 2.5 2.5 2.2 1.9 1.8 
12-Footwear, headgear, etc.  2.6 2.8 2.7 2.6 2.5 2.0 1.8 1.8 
13-Articles of stone, plaster, cement  2.4 2.3 2.3 2.3 2.4 2.5 2.6 2.4 
14-Precious stones and metals  0.2 0.2 0.2 0.3 0.3 0.3 0.4 0.4 
15-Base metals and articles thereof  10.0 10.8 10.0 9.9 9.7 10.4 11.4 12.0 
HS 72 Iron and steel  3.5 3.0 3.8 4.2 4.0 4.8 5.9 6.3 
HS 7214 Other bars and rods of iron or 
non-alloy steel, not further worked than 
forged, hot -rolled, hot -drawn or hot -
extruded  0.6 0.8 0.7 0.5 0.8 1.0 1.9 2.7 
HS 76 Aluminium and articles thereof  1.5 1.5 1.5 1.5 1.4 1.5 1.8 2.1 
HS 7601 Unwrought aluminium  0.5 0.5 0.5 0.5 0.4 0.4 0.7 0.8 
16-Machinery, electrical equipment  15.1 15.7 14.6 14.9 14.4 15.0 14.0 13.2 
HS 85 Electrical machinery and 
equipment and parts thereof  7.1 7.1 6.9 6.8 7.1 7.3 6.9 6.6 
HS 84 Machinery and mechanical 
appliances; parts thereof  8.0 8.6 7.7 8.1 7.3 7.7 7.0 6.6 
17-Transport equipment  6.5 7.0 7.0 7.4 7.1 7.1 7.4 6.5 
HS 87 Vehicles other than railway or 
tramway rolling -stock, and parts and 
accessories thereof  6.0 6.9 6.9 7.3 7.0 7.0 7.1 5.9 
HS 8703 Motor cars and other motor 
vehicles principally designed for the 
transport of persons, including station 
wagons and racing cars  4.0 4.5 4.8 5.1 5.0 5.0 5.0 4.1 
18-Precision equipment  1.3 1.2 1.3 1.4 1.4 1.4 1.3 1.1 
20-Miscellaneous manufactured articles  2.2 2.2 2.3 2.3 2.2 2.3 2.3 2.1 
21-Works of art, etc.  0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 
Other  0.0 0.0 0.0 0.0 0.1 0.0 0.0 0.0 
Source:  WTO Secretariat calculations, based on data provided by the authorities.   WT/TPR/S /449 • Albania  
 
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  Table A1. 3 Merchandise exports by destination,  2015 -22 
 2015  2016  2017  2018  2019  2020  2021  2022  
Total exports  
(EUR  million)  1,738  1,770  2,035  2,422  2,428  2,192  3,013  4,071  
  (% of total)  
Americas  1.4 1.0 1.4 1.9 1.4 1.4 1.5 3.0 
United  States  0.9 0.7 1.3 1.7 1.2 1.2 1.3 2.8 
Other America  0.5 0.4 0.2 0.2 0.2 0.2 0.2 0.2 
Europe  93.5 93.8 93.5 94.5 94.9 94.3 93.4 92.8 
EU-27 75.1 77.7 76.9 75.9 76.3 74.7 72.3 73.3 
Italy 50.9 54.7 53.5 47.9 47.9 45.5 42.3 43.4 
Germany  3.2 3.4 4.1 4.4 4.8 5.9 5.5 6.6 
Spain  5.2 3.3 5.5 7.8 8.0 6.0 6.4 4.8 
Greece  3.9 4.6 4.3 4.2 4.3 4.9 5.8 4.8 
Croatia  0.2 0.4 0.3 0.3 0.4 0.7 0.9 1.6 
Sweden  0.0 0.2 0.9 0.8 0.9 0.9 0.9 1.4 
Czech  Republic  0.3 0.6 0.9 1.5 1.4 1.6 1.7 1.3 
Bulgaria  1.2 1.1 1.1 0.9 1.2 1.4 1.2 1.2 
Slovak  Republic  0.1 0.1 0.1 0.2 0.1 0.5 1.2 1.2 
Austria  1.2 0.5 0.7 0.6 0.6 0.6 0.7 1.1 
EFTA 1.0 1.1 0.5 1.0 0.4 0.3 0.7 0.7 
Other Europe  17.3 15.0 16.0 17.6 18.2 19.3 20.4 18.8 
Kosovoa 8.6 6.8 7.7 8.7 10.0 9.7 10.2 7.8 
North  Macedonia  2.6 2.6 3.1 2.8 2.9 3.2 3.4 4.0 
Serbia  1.3 1.9 1.8 2.6 1.8 2.3 2.7 2.8 
Montenegro  1.4 1.8 1.8 1.8 1.8 1.9 1.6 1.6 
Türkiye  2.9 1.2 0.8 0.7 0.7 1.1 1.4 1.3 
Commonwealth of Independent 
States (CIS)b 0.0 0.1 0.1 0.1 0.0 0.0 0.3 0.1 
Africa  1.1 0.7 0.9 0.3 0.3 0.6 0.3 0.2 
Middle East  0.9 0.8 0.5 0.6 0.6 0.7 0.5 0.4 
Asia 3.1 3.7 3.6 2.7 2.7 2.9 3.9 3.4 
China  2.7 3.1 3.1 1.8 2.1 1.8 2.5 2.0 
Japan  0.1 0.2 0.2 0.2 0.3 0.3 0.8 0.9 
Other Asia  0.2 0.5 0.3 0.7 0.4 0.7 0.7 0.5 
Other  0.1 0.0 0.0 0.1 0.0 0.1 0.0 0.0 
Memo:           
EU-28 75.3 77.9 77.1 76.3 76.6 75.0 72.5 73.7 
CEFTA  11.8 11.3 12.1 14.0 14.7 15.2 16.2 14.4 
a References to Kosovo shall be understood to be in the context of Security Council 
resolution  1244 (1999).  
b Commonwealth of Independent States, including certain associate and former member States.  
Source  WTO Secretariat calculations, based on data provided by the authorities.  
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  Table A1. 4 Merchandise imports  by origin,  2015 -22 
  2015  2016  2017  2018  2019  2020  2021  2022  
Total imports  
(EUR  million)  3,900  4,226  4,667  5,030  5,283  4,905  6,547  8,007  
  (% of total)  
Americas  4.2 4.1 3.8 3.8 4.3 3.9 4.1 3.5 
United  States  1.6 1.9 1.5 1.5 2.0 1.5 1.6 1.4 
Other America  2.6 2.2 2.3 2.3 2.4 2.3 2.5 2.1 
Europe  79.5 79.4 80.4 78.7 77.9 78.5 76.7 75.1 
EU-27 60.7 62.4 60.6 60.0 57.6 57.9 54.4 51.6 
Italy 30.2 29.2 28.6 27.3 25.3 25.1 24.3 21.6 
Greece  7.8 7.9 8.0 8.1 8.4 9.0 8.0 7.8 
Germany  6.7 9.5 8.1 7.8 7.2 7.7 6.9 6.2 
Poland  1.5 1.6 1.6 1.5 1.6 1.7 1.5 1.7 
Spain  1.6 2.2 2.2 2.5 1.8 1.6 1.4 1.7 
France  2.2 2.0 1.7 1.9 2.0 2.0 1.6 1.5 
Romania  1.1 1.2 1.2 1.7 1.3 1.0 0.9 1.3 
Slovenia  0.6 0.6 0.8 0.7 1.1 0.8 0.7 1.3 
Bulgaria  1.4 1.3 1.4 1.4 1.3 1.3 1.3 1.2 
EFTA 1.6 1.2 2.2 1.7 2.5 1.9 1.7 2.4 
Switzerland  1.5 1.2 2.1 1.6 2.4 1.7 1.6 2.3 
Other Europe  17.2 15.8 17.6 17.0 17.8 18.7 20.5 21.1 
Türkiye  8.0 7.9 8.1 8.4 9.5 9.6 10.8 12.1 
Serbia  3.8 3.1 4.0 3.4 3.6 3.8 3.5 3.4 
Kosovoa 1.0 1.0 1.3 1.4 1.2 1.4 1.9 1.7 
North  Macedonia  1.6 1.3 1.4 1.5 1.3 1.5 1.7 1.6 
Commonwealth of 
Independent States 
(CIS)b 2.2 1.9 2.0 2.0 1.8 2.4 2.4 2.1 
Russian  Federation  2.2 1.9 1.9 2.0 1.8 2.2 1.9 1.1 
Azerbaijan  0.0 0.0 0.0 0.0 0.0 0.1 0.3 0.7 
Africa  1.0 1.3 1.8 1.6 1.7 1.3 1.8 1.9 
Middle East  0.9 0.8 0.7 2.0 1.8 1.5 3.5 5.4 
Saudi  Arabia, 
Kingdom of  0.1 0.1 0.1 0.2 0.1 0.1 1.4 3.6 
Asia 11.9 12.4 11.3 11.8 12.4 12.4 11.4 12.0 
China  8.6 8.8 7.9 8.4 9.2 8.9 8.1 8.1 
Japan  0.4 0.5 0.5 0.4 0.4 0.4 0.4 0.3 
Other Asia  2.9 3.1 2.9 3.0 2.7 3.1 2.9 3.5 
Other  0.2 0.1 0.0 0.1 0.0 0.1 0.0 0.0 
Memo:           
EU-28 61.6 63.1 61.5 60.9 58.4 58.8 55.3 52.4 
CEFTA  7.4 6.0 7.2 6.6 6.6 7.0 7.6 7.1 
a References to Kosovo shall be understood to be in the context of Security Council 
resolution  1244 (1999).  
b Commonwealth of Independent States, including certain associate and former member States.  
Source:  WTO Secretariat calculations, based on data provided by the authorities.  
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  Table A2. 1 Selected notifications,  1 January  2016 -31 August  2023  
Agreement  Requirement/contents  Periodicity  WTO documents  
(most recent during review 
period, if submitted 
periodically)  
Agreement on Agriculture  
Articles  10 and  18.2  Export subsidies (Table  ES:1)  Annual  G/AG/N/ALB/19, 2  May 2021 
Article  18.2-DS:1 Domestic support (Table  DS:1)  Annual  G/AG/N/ALB/8, 
16 October  2018 
Agreement on Import Licensing Procedures  
Article  7.3 Replies to questionnaire on import 
licensing procedures  Annual  G/LIC/N/3/ALB/12, 
8 March  2023 
Agreement on Trade -Related Aspects of Intellectual Property Rights  
Article  63.2 Laws and regulations  Once, then 
changes  IP/N/1/ALB/6; 
IP/N/1/ALB/C/3, 
29 January  2021 
Article  69 Notification of contact points  Once, then 
changes  IP/N/3/ALB/1, 
18 September  2020 
Agreement on Trade Facilitation  
Articles  15 and  16  Notification of Category 
commitments  Once, then 
changes  WT/PCTF/N/ALB/3, 
28 April 2023 
Articles  1.4, 10.4, 10.6.2, 
and 12.2.2  Notification of Category 
commitments  Once, then 
changes  G/TFA/N/ALB/2; 
G/TFA/N/ALB/1/Add.1, 
18 October  2019 
Agreement on Implementation of Article  VI of the GATT  1994 (Anti -dumping)  
Article  16.4 Semi-annual reports under of the 
Agreement - Revision   G/ADP/N/377/Add.1, 
20 April 2023 
Agreement on Rules of Origin  
Paragraph  4 of Annex  II Preferential rules of origin   G/RO/N/230, 
24 November  2021 
Article  5 Non-preferential rules of origin   G/RO/N/209, 11  January  2021 
Agreement on the Application of Sanitary and Phytosanitary Measures  
Article  7, Annex  B Sanitary/phytosanitary 
regulations  Ad hoc G/SPS/N/ALB/201, 
25 April 2017 
Agreement on Subsidies and Countervailing Measures  
Article  25.1-GATT  1994 
Article  XVI:1  Subsidies (any subsidy as defined 
in ASCM  1:1 which is specific 
within the meaning of ASCM  2) Semi-annual  G/SCM/N/372/ALB/Add.1, 
18 March  2021 
 
Article  25.11  Countervailing duty actions (taken 
within the preceding 6  months)  Semi-annual  G/SCM/N/399/Add.1, 
20 April 2023 
Agreement on Technical Barriers to Trade   
Articles  2.9 and  5.6 Technical regulations and 
conformity assessment 
procedures (proposed)  Ad hoc G/TBT/N/ALB/96, 16  July 2020 
Decision on Notification Procedures for Quantitative Restrictions  
G/L/59/Rev.1  notification  Market access – quantitative 
restrictions  Biennial, and 
ad hoc G/MA/QR/N/ALB/1/Add.2, 
9 November  2021 
Understanding on the Interpretation of Article  XVII:4(a) of the GATT  1994 (State trading)  
GATT  1994, 
Article  XVII:4(a)  Activities of state trading 
enterprises  Biennial  G/STR/N/19/ALB, 
2 November  2022 
 
General Agreement on Trade in Services  
Article  III:3 Legislative changes  Ad hoc S/C/N/1098, 28  February  2022 
Article  III:4 Enquiry/contact points  Once, then 
changes  S/ENQ/78/Rev.21, 
12 February  2021 
Article  V:7(a)  Economic integration agreements  Ad hoc S/C/N/1055; WT/REG454/N/1, 
4 May 2021 
Article  VII:4 Recognition agreements  Ad hoc S/C/N/1019, 
17 December  2020 
Participation in Regional Trade Agreements  
Article  XXIV:7(a) of 
GATT  1994 Notification of Regional Trade 
Agreement  Ad hoc S/C/N/1055; WT/REG454/N/1, 
4 May 2021 
Source:  Compiled by WTO Secretariat, based on the notifications database.  
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